Kraken's Parent Payward Seeks US Trust Charter for Institutional Crypto Custody
Payward, the parent company of crypto exchange Kraken, has applied for a national trust company charter with the US Office of the Comptroller of the Currency (OCC). The move marks a major step in the firm’s push to expand its regulated services for institutional clients. If approved, the charter would create Payward National Trust Company (PNTC), a federally supervised entity specialising in digital asset custody.
The application follows Payward’s recent acquisitions, including retail futures platform NinjaTrader for $1.5 billion, crypto derivatives exchange Bitnomial for up to $550 million, and Hong Kong-based payments firm Reap Technologies for $600 million. These deals reflect the company’s broader strategy to strengthen its infrastructure and regulatory footprint in the US.
The proposed PNTC would focus on fiduciary custody and related digital asset services, operating under direct OCC oversight. According to co-CEO Arjun Sethi, a national trust charter provides the regulatory certainty that institutions demand. It also lays the groundwork for next-generation custody solutions, he added. PNTC would leverage Payward’s existing compliance, risk management, and custody systems to serve clients needing a federally regulated qualified custodian. The firm already holds a Wyoming SPDI charter through Kraken Financial, granted in 2020, which connected it directly to the US payments network. This latest OCC application builds on that foundation, aiming to create a fully regulated custody entity for institutional investors. Crypto-native firms have previously pursued national trust charters to gain broader legitimacy and nationwide operational reach. Payward’s move aligns with this trend, reinforcing its commitment to regulatory compliance while expanding its institutional offerings.
The charter, if approved, would position Payward as a key player in federally regulated digital asset custody. Institutions seeking bank-level protections for their crypto holdings would gain access to a directly supervised entity. The decision now rests with the OCC, which will assess whether the application meets its regulatory standards.
