Payward, the parent company of cryptocurrency exchange Kraken, filed an application with the US Office of the Comptroller of the Currency (OCC) for a national trust company charter on May 8, 2026. The charter would authorize the firm to provide fiduciary custody and digital asset services to institutional clients. The move follows approvals granted to six competing crypto firms, including Coinbase, Ripple Labs, BitGo, Circle, Fidelity Digital Assets, and Paxos, positioning Payward to expand its institutional infrastructure ahead of a planned 2027 initial public offering.
OCC Charter Applications Accelerate Across Crypto Sector
The OCC approved similar national trust company charters for Ripple Labs, BitGo, Circle, Fidelity Digital Assets, and Paxos in December 2025. Payward’s application follows this wave of approvals, reflecting intensifying competition among major crypto firms to secure banking-grade regulatory credentials. A national trust company charter establishes federal oversight of fiduciary custody operations and provides institutional clients with regulatory certainty. Payward already operates a Special Purpose Depository Institution through Kraken Financial in Wyoming and maintains a Federal Reserve master account, giving it existing infrastructure to support institutional payment services. The OCC charter would layer additional federal authorization onto these existing licenses.
Institutional Demand Reshapes Crypto Custody Market
Kraken co-CEO Arjun Sethi stated the firm is “80% ready” for an IPO by 2027, with the OCC charter serving as a critical compliance milestone. “A national trust company provides the certainty institutions require and establishes the infrastructure to build the next generation of custody,” Sethi said. “This is not about being first; it is about getting the framework right so markets can scale with clarity, interoperability, and long-term vision for what clients will demand as these systems mature.” The statement reflects a strategic pivot toward institutional clients rather than retail traders, a positioning Payward reinforces through recent acquisition and partnership targets including Bitnomial, Reap, and MoneyGram.
Regulatory Scrutiny Clouds OCC Approval Process
The OCC faces ongoing scrutiny over its approval practices. World Liberty Financial, a crypto company co-founded by Trump and family members, has a pending OCC charter application under review. The agency’s handling of competing applications—particularly those involving politically connected entities—may influence the timeline and conditions of Payward’s approval. No specific approval timeline has been announced for Payward’s charter application. Institutional crypto custody demand continues accelerating, making OCC approval a competitive necessity rather than a differentiator for Kraken.
