In a significant move toward becoming a federally recognized financial institution, Payward, the parent company of the prominent cryptocurrency exchange Kraken, has officially applied for a national trust company charter with the U.S. Office of the Comptroller of the Currency (OCC). The announcement, made on May 8, 2026, marks a pivotal step in Kraken’s ambition to offer federally regulated crypto custody and fiduciary services.
If approved, the charter would give rise to the Payward National Trust Company (PNTC), which aims to provide secure custody solutions specifically geared toward digital assets. This initiative builds on Kraken’s existing Wyoming Special Purpose Depository Institution (SPDI) charter, allowing the company to operate under both state and federal regulatory frameworks.
Arjun Sethi, co-CEO of Kraken, emphasized the importance of establishing a robust compliance framework over merely being the first to market. He stated, “A national trust company provides the certainty institutions require,” highlighting the firm’s commitment to meeting the needs of institutional clients seeking a qualified custodian.
The OCC has previously approved similar charter applications from notable players in the crypto industry, including Coinbase, Ripple Labs, and Fidelity Digital Assets. If Payward’s application is successful, it would join this elite group, enhancing its credibility and operational capabilities in the rapidly evolving digital asset landscape.
Strengthening Infrastructure with Multi-Charter Strategy
Kraken Financial, which holds a Wyoming SPDI charter established in 2020, was the first digital asset bank to secure a Federal Reserve master account, granting it direct access to the U.S. payments system. The proposed OCC trust charter would complement this existing framework, positioning Payward to effectively serve institutional clients with the requisite federal oversight.
Under the planned structure, PNTC will leverage Payward’s established compliance and risk management systems, aiming to cater to the growing demand for federally regulated custodial services in the digital asset space.
The OCC, headed by Jonathan Gould, has been proactive in approving crypto charter applications, especially following a surge of interest in digital assets throughout late 2025. With Payward’s application now under review, the crypto community eagerly anticipates the regulator’s decision.
Strategic Acquisitions and Future IPO Prospects
Payward’s recent activities reflect a strong growth trajectory, with the company committing over $2.6 billion in acquisitions in a bid to expand its market presence. In 2025, Payward acquired the retail futures platform NinjaTrader for $1.5 billion, followed by a deal in April 2026 to purchase crypto derivatives exchange Bitnomial for up to $550 million. This acquisition added a comprehensive suite of CFTC licenses for brokerage, clearing, and exchange operations.
Most recently, the firm announced a $600 million agreement to acquire Hong Kong-based Reap Technologies, a move that enhances Kraken’s capabilities in stablecoin-powered cross-border payments and card infrastructure across Asia.
Despite these significant investments, Kraken remains focused on its long-term growth strategy, with Sethi revealing that the company is “about 80% ready” for a potential IPO by 2027. The firm has also forged a partnership with MoneyGram to further its payments initiative, signaling a robust approach to integrating traditional finance with digital innovations.
As the crypto landscape continues to evolve, Payward’s commitment to establishing a federally regulated trust company underscores its ambition to lead in the digital asset custody space, while navigating the complexities of regulatory compliance.
