Payward, the parent company of cryptocurrency exchange Kraken, has officially applied to the U.S. Office of the Comptroller of the Currency (OCC) for a national trust company charter. This strategic move aims to establish Payward National Trust Company (PNTC), a federally regulated entity designed to offer fiduciary custody and other services primarily for digital assets. As CoinDesk reported, the application signifies a major push to become a federally regulated crypto bank, expanding Payward's regulated digital asset infrastructure.
The proposed PNTC intends to cater to institutional clients and individual customers who require bank-level custody and trust services for their digital assets. Payward plans to leverage its existing robust infrastructure, risk management, and compliance programs to deliver these services in a secure and compliant manner under OCC oversight. This initiative is seen as a crucial step in the maturing U.S. regulatory landscape for digital assets.
This application builds upon Payward's existing regulatory foundation, which includes Kraken Financial, its Wyoming Special Purpose Depository Institution (SPDI) that holds a Federal Reserve master account. Payward and Kraken co-CEO Arjun Sethi stated, "Our long-held belief has always been that the right path forward for digital assets runs through robust, transparent regulation." Sethi emphasized that the national trust company and Kraken Financial are "complementary pillars" of Payward's banking strategy, aiming to advance an efficient and accessible digitally native financial system.
Payward's pursuit of a federal charter follows a trend among other prominent crypto firms. The OCC has previously granted similar conditional approvals or charters to companies such as Coinbase, Ripple, BitGo, Circle, Paxos Trust Company, and Fidelity Digital Assets. This indicates a growing regulatory acceptance and a path for crypto-native entities to gain broader legitimacy and operate nationwide without relying solely on state-by-state licensing.
The move also aligns with Kraken's broader growth trajectory, which includes recent acquisitions like stablecoin firm Reap Technologies and derivatives exchange Bitnomial. While an initial public offering (IPO) remains paused, Payward's consistent efforts to enhance regulatory compliance and service offerings underscore its commitment to solidifying its position within the evolving digital asset ecosystem.
