Kraken eyes federal trust status
Payward, the parent company behind crypto exchange Kraken, has filed for a national trust company charter with the U.S. Office of the Comptroller of the Currency (OCC). The application aims to establish Payward National Trust Company (PNTC), a federally regulated institution focused on digital asset custody and related fiduciary services. If approved, this would mark a significant step for Kraken as it seeks to provide institutional clients with bank-level protections and oversight under federal regulation.
The OCC has previously granted similar charters to industry players such as Coinbase, Paxos, and Fidelity Digital Assets, signaling a growing trend among major crypto firms to pursue federal trust status. For Kraken, this move builds on its earlier efforts in 2020 when its Wyoming-based special purpose depository institution (SPDI), Kraken Financial, became the first digital asset bank to secure a Federal Reserve master account.
Aiming for OCC’s crypto greenlight
Payward’s newly proposed trust company would primarily serve institutions and customers seeking custody services for cryptocurrencies and other digital assets. The charter would place PNTC under direct OCC supervision, offering regulatory clarity that many large investors demand.
In April, Payward agreed to acquire Bitnomial for up to $550 million, adding CFTC licenses for brokerage, clearing, and exchange operations.
On paper, Kraken already holds a unique position through its Wyoming SPDI charter and access to the U.S. payment system via its Fed master account. However, federal oversight from the OCC could further legitimize its offerings to risk-conscious institutions. The OCC’s willingness to approve similar charters for companies like Ripple Labs and BitGo suggests Payward’s application stands on established precedent—though approval is not guaranteed.
See Also
Multi-charter strategy takes center stage
According to coindesk.com, Payward describes its pursuit of an OCC charter as part of a “multi-charter” strategy: maintaining both state and federal regulatory footholds. This approach allows the firm to adapt to evolving U.S. regulations while broadening its service offerings across jurisdictions. In addition to its Wyoming SPDI, Payward continues to expand through acquisitions—most notably purchasing NinjaTrader in 2025 for $1.5 billion and agreeing in April to acquire crypto derivatives exchange Bitnomial for up to $550 million.
The company also struck a $600 million deal this week to buy Hong Kong-based payments platform Reap Technologies.
Such rapid-fire acquisitions have added licensed brokerage, clearing, and exchange operations under CFTC regulation via Bitnomial, further diversifying Payward’s regulatory portfolio. The multi-charter model is designed not just for compliance but also for resilience amid shifting policy landscapes at both state and federal levels.
Institutional clients in regulatory spotlight
The planned Payward National Trust Company would emphasize services tailored for institutional customers—particularly those requiring robust custodial protections and clear regulatory frameworks. While Kraken already offers retail-focused products through its main exchange platform, the new trust entity would target asset managers, corporations, and other large-scale clients who often face strict requirements around custody and compliance.
Kraken’s recent acquisition spree reflects this institutional focus: the $1.5 billion NinjaTrader purchase added futures trading capabilities popular with professional traders, while Bitnomial brought CFTC-regulated derivatives infrastructure into the fold. The $600 million Reap Technologies deal signals ambitions beyond U.S. borders by expanding into global payments—a move that could further appeal to multinational clients seeking integrated crypto-banking solutions.
Despite these advances, it’s unclear how quickly the OCC will rule on Payward’s application or what conditions might be attached if approval is granted.
OCC decision could reshape crypto banking
Kraken’s parent is not alone in pursuing national trust charters; Coinbase secured conditional approval in April, while Circle, BitGo, Ripple Labs, Paxos Trust Company, and Fidelity Digital Assets all received similar nods from regulators in December. Still, each approval process has involved unique scrutiny based on business models and risk management protocols.
Kraken co-CEO Arjun Sethi indicated in May that the company was “about 80% ready” for an initial public offering by 2027—a timeline that could be influenced by how regulators view its expanding footprint across both state and federal domains. On one hand, holding multiple charters may offer flexibility; on the other hand, overlapping oversight could complicate compliance efforts if rules diverge between agencies.
For now, Kraken’s bid for an OCC charter underscores the growing convergence between traditional banking standards and digital asset innovation—an intersection where federal approval carries weight far beyond branding alone.
The Key Lessons
- •Payward, Kraken's parent, applied to the OCC in 2024 for a national trust company charter to form Payward National Trust Company.
- •In April 2024, Payward agreed to acquire Bitnomial for up to $550 million, expanding CFTC-licensed derivatives capabilities.
- •Kraken Financial, chartered in Wyoming in 2020, was the first digital asset bank to secure a Federal Reserve master account.
Near-term focus
Market attention centers on the pending decision by the U.S. Office of the Comptroller of the Currency (OCC) regarding Payward’s application for a national trust company charter; if the OCC grants approval, Payward National Trust Company would immediately become a federally regulated provider of digital asset custody for institutional clients, but the timeline for an OCC ruling remains unclear.
