Payward, the parent company of crypto exchange Kraken, filed for a national trust company charter with the U.S. Office of the Comptroller of the Currency on May 8, 2026. The application targets federal regulation of a digital-asset custody entity designed to serve institutional clients requiring bank-level protections and operational certainty.
Building on Existing State Infrastructure
Payward’s OCC application builds directly on the Wyoming Special Purpose Depository Institution charter granted to Kraken Financial in 2020. That subsidiary already holds a Federal Reserve master account, granting it access to the nation’s payments infrastructure. The proposed Payward National Trust Company would operate as a complementary federal layer atop this existing state-level infrastructure, combining state and federal oversight under a multi-charter strategy. Arjun Sethi, Payward and Kraken Co-CEO, stated: “A national trust company provides the certainty institutions require and establishes the infrastructure to build the next generation of custody.”
Strategic Acquisitions Accelerate Banking Expansion
The OCC filing coincides with rapid consolidation across Payward’s business. In 2025, Payward acquired NinjaTrader, a retail futures platform, for $1.5 billion. In April 2026, it agreed to acquire Bitnomial, a crypto derivatives exchange, for up to $550 million. Most recently, on May 8, 2026, Payward struck a $600 million deal for Reap Technologies, a Hong Kong payments firm. These acquisitions signal a shift from exchange-only operations toward a diversified financial services holding company with custody, derivatives, and payments capabilities.
Regulatory Positioning in Crypto’s New Era
The charter application reflects the broader crypto industry trend of pursuing federal banking oversight rather than resisting it. Under current regulatory conditions, institutional adoption of digital assets depends on custody solutions with explicit bank-level protections. An OCC-chartered trust company would provide fiduciary status and regulatory clarity that state charters alone cannot deliver. The move positions Payward to capture custody demand from institutions that require federal banking safeguards, particularly as derivatives and cross-border payments become integrated into institutional crypto operations.
Regulatory Timeline Remains Undefined
Payward has not disclosed a timeline for OCC approval or specified the exact custody services the trust company would offer. The regulator’s review process for digital-asset charters remains unpredictable. The company’s existing Federal Reserve master account and Wyoming charter provide operational runway during the application review. Approval would mark a significant escalation in Kraken’s regulatory footprint and institutional positioning.
