Payward Files OCC Trust Charter Application to Advance Kraken’s Federal Crypto Custody Push

TLDR:

• • Payward filed for an OCC national trust charter to establish a federally regulated crypto custody entity called PNTC.
    
  • The proposed PNTC would serve institutional clients requiring bank-level custody protections under direct OCC oversight.
    
  • Kraken Financial remains the first digital-asset bank to secure a Federal Reserve master account since 2020.
  • Payward’s multi-charter strategy pairs its Wyoming SPDI with the proposed OCC trust charter for broader regulatory coverage.

Payward, the parent company of Kraken, has applied for a national trust company charter with the OCC. The move aims to build a federally regulated digital asset custody entity for institutional clients.

Kraken Pursues Federal Oversight Through OCC Application

If approved, the charter would establish Payward National Trust Company (PNTC). This new entity would focus on fiduciary custody and related digital asset services.

The trust would primarily serve institutions seeking bank-level custody protections. It would operate under direct OCC oversight, adding federal legitimacy to Kraken’s regulated framework.

The application marks a deliberate step in Payward’s U.S. regulatory expansion strategy. Crypto firms have increasingly pursued traditional financial charters to attract institutional clients.

PNTC would rely on Payward’s existing compliance, risk management, and custody infrastructure. This structure is designed to extend access to clients requiring a federally regulated qualified custodian.

Co-CEO Arjun Sethi addressed the rationale behind the application directly. “A national trust company provides the certainty institutions require,” Sethi stated.

He further noted that it “establishes the infrastructure to build the next generation of custody.” His comments point to a deliberate push to serve institutional clients at the federal level.

National trust charters overseen by the OCC have been pursued by crypto-native firms before. These charters offer broader legitimacy and nationwide operations.

They also reduce reliance on state-by-state licensing, which can be fragmented and inconsistent. Payward’s application reflects this broader industry trend toward federal regulatory frameworks.

Kraken Builds Multi-Charter Strategy Alongside Major Acquisitions

The OCC application builds on the foundation of Kraken Financial’s Wyoming SPDI charter, granted in 2020. Kraken Financial was the first digital-asset bank to secure a Federal Reserve master account.

That access gave it a direct link to the U.S. payments system. Sethi described the Wyoming SPDI and prospective OCC trust charter as “complementary pillars” of Payward’s banking strategy.

Payward has also pursued growth through a series of major acquisitions. In 2025, it acquired retail futures platform NinjaTrader for $1.5 billion.

In April, Payward agreed to acquire crypto derivatives exchange Bitnomial for up to $550 million. That deal adds a full suite of CFTC licenses covering brokerage, clearing, and exchange operations.

This week, Payward also announced a $600 million deal to acquire Hong Kong-based payments firm Reap Technologies.

The deal expands Kraken’s presence in stablecoin-powered cross-border payments. It also strengthens Kraken’s card infrastructure across Asia. Together, these moves reflect Kraken’s preparation for a potential IPO.

The U.S. regulatory climate under the current administration has become more industry-friendly toward digital assets. This shift has encouraged crypto firms to seek federal charters, licenses, and banking approvals.

Payward’s approach aligns with this environment, positioning Kraken as a fully regulated financial institution. The OCC application is the latest step in that direction.