Kraken’s Parent Payward Files for OCC National Trust Charter in Bid to Become a Federally Regulated Crypto Bank

Payward, the parent company of cryptocurrency exchange Kraken, has officially filed an application with the U.S. Office of the Comptroller of the Currency (OCC) for a national trust company charter. The application, announced on May 8, 2026, seeks to create Payward National Trust Company (PNTC), a federally regulated entity specializing in fiduciary custody of digital assets. If approved, the structure would offer trust services under the direct supervision of the OCC, the federal regulator of American banks. This represents the latest step in an aggressive strategy to build a comprehensive regulatory banking ecosystem, as Kraken positions itself for a potential initial public offering.

Background

The OCC application from Payward does not come out of nowhere. It is part of a strategy to diversify banking charters built over several years. Kraken established Kraken Financial in 2020, a Wyoming Special Purpose Depository Institution (SPDI). This structure, under the supervision of the Wyoming state regulator, allows Kraken to operate as a specialized digital asset bank. The SPDI framework was innovative in the American regulatory landscape, offering an alternative to the more restrictive New York BitLicenses.

On March 16, 2026, Kraken Financial obtained a master account with the Federal Reserve Bank. This historic decision marked the first time a digital asset bank saw its access to federal payment infrastructure approved. The master account allows Kraken to process settlement operations without bank intermediation, accessing the American payment system directly. This was the first approval of its kind for a digital asset bank, according to information reported by The Defiant. This opening was warmly welcomed by the American crypto ecosystem, which saw it as a strong signal of the federal authorities’ willingness to facilitate the integration of digital assets into the traditional financial system.

Arjun Sethi, co-CEO of Payward and Kraken, stated at the announcement: « Our long-held belief has always been that the right path forward for digital assets runs through robust, transparent regulation. A national trust company provides the certainty institutions require and establishes the infrastructure to build the next generation of custody. 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. » This declaration illustrates Kraken’s ambition to position itself as a major regulatory player rather than a challenger to the traditional financial system.

This multi-charter strategy aims to build a banking ecosystem where each element covers a distinct but complementary function. The Wyoming SPDI covers digital asset banking operations at the state level. The Federal Reserve master account opens access to federal payment infrastructure. The federal national trust charter will complete the picture by offering federally recognized qualified custodian status to serve institutional clients required by traditional financial regulations. Together, these three pillars allow Kraken to offer a full range of services from custody to exchange through payments and trust services.

The Facts

The charter application was filed on May 8, 2026, with the OCC. It seeks to create Payward National Trust Company (PNTC), which would be under the direct supervision of the federal regulator. The application was announced simultaneously through an official Payward communication and the publication of a press release on BusinessWire. This coordinated approach reflects meticulous preparation by Kraken’s regulatory team, which had worked with OCC legal departments in the preceding months to ensure the application was complete upon filing.

PNTC is designed to serve two customer segments. Institutional clients, including investment funds, corporate treasuries and asset managers, represent the primary target market. These actors require a qualified custodian that meets American regulatory standards for the safekeeping of financial assets. Individual customers seeking bank-level custody services for their digital assets constitute the second segment, reflecting Kraken’s goal to democratize access to institutional-grade custody. This dual focus allows PNTC to capture both the significant volumes of institutional clients and the growth of high-net-worth individuals interested in digital assets.

The proposed structure would rely on Payward’s existing infrastructure, including risk management programs, compliance protocols and security systems developed for Kraken Financial. The group’s accumulated experience in operating its exchange platform, combined with investments made in regulatory compliance, represent significant assets in seeking this federal status. The group can thus claim a demonstrated track record in client asset security and regulatory compliance.

Simultaneously, Kraken announced on May 7, 2026, the acquisition of Reap Technologies, a Hong Kong-based company specializing in stablecoin payments. The amount of this acquisition can reach 600 million dollars, according to the official press release. Reap Technologies brings card issuance services, cross-border payments and stablecoin treasury services for B2B clients. This acquisition strengthens Kraken’s presence in the Asia-Pacific region, where the adoption of stablecoins for daily payments is progressing rapidly. It also allows Kraken to diversify its revenue streams beyond simple cryptocurrency exchange, proposing an integrated digital payments ecosystem with its digital asset offerings.

The total value of acquisitions made by Payward over the past twelve months is substantial. Approximately 2.7 billion dollars have been spent to strengthen the ecosystem. In 2025, the acquisition of NinjaTrader for 1.5 billion dollars allowed Kraken to penetrate the retail futures trading platform market. In April 2026, the acquisition of Bitnomial for an amount potentially reaching 550 million dollars brought CFTC licenses covering brokerage, clearing and exchange operation. These licenses are essential for Kraken, which wishes to offer derivatives products across all segments of digital finance. The sum of these acquisitions reveals Payward’s ambition to build a complete digital financial group, capable of rivaling traditional financial institutions on their own turf.

Analysis

Payward’s approach is part of a broader movement toward professionalization and regulation of the American crypto sector. Between December 2025 and March 2026, the OCC conditionally approved or advanced eleven applications for crypto-related trust charters, according to data reported by CryptoBriefing. This acceleration of approvals is explained by the Trump administration’s political willingness to create a more favorable regulatory environment for the crypto industry in the United States. The change in the White House’s position acted as a catalyst for files that had been languishing in regulators’ drawers for years.

Other candidates currently in discussion with the OCC include major ecosystem players: Circle, issuer of the largest dollarized stablecoin in the world with a market capitalization exceeding 40 billion dollars; Ripple, known for its multi-year regulatory dispute with the SEC; BitGo, a custody specialist that has served numerous institutional clients; Fidelity Digital Assets, the digital assets branch of traditional asset manager with billions of assets under custody; Paxos, issuer of several regulated stablecoins; Bridge, a crypto payments platform; Crypto.com, a global exchange with millions of users; and ZeroHash, a custody infrastructure for enterprises. This list illustrates the level of competition between major sector names to secure a stable regulatory framework in the United States.

The status of federally recognized « qualified custodian » is a holy grail for sector players. American institutional asset managers are subject to strict rules regarding the safekeeping of financial assets they manage. For pension funds, family offices and corporate treasuries that wish to integrate digital assets into their balance sheets, the choice of a federally recognized qualified custodian is often a necessary condition to meet their regulatory obligations. With an OCC charter, PNTC could serve these clients who could until now only rely on traditional finance custodians. This regulatory opening could trigger a wave of institutional adoption for digital assets over the coming years.

Payward’s strategy is particularly aggressive in terms of building a regulatory treasury. The three targeted charters are not redundant but complementary. The Wyoming SPDI allows operating as a digital asset bank under state supervision. The Federal Reserve master account provides access to federal payment infrastructure. The federal national trust charter grants federally recognized qualified custodian status. Together, these three pillars allow Kraken to offer a full range of services from custody to exchange through payments and trust services. This « full stack » approach differentiates Kraken from competitors who must rely on partners for certain regulatory services.

Market Reactions

Market reactions to this announcement were not detailed in official communications. However, this news is part of a context where major cryptocurrency exchanges are pursuing regulatory charters. Coinbase, Kraken’s main competitor in the United States, has also obtained conditional approval from the OCC for a similar trust charter. This regulatory rivalry between the two platforms is significant: it reflects a common ambition to position themselves as the preferred intermediaries of traditional finance in the digital assets market. Both companies appear convinced that the future of the sector lies in total integration with the traditional financial system.

Market analysts agree that the status conferred by an OCC charter is a major competitive advantage. In the eyes of institutional investors, federal supervision offers additional guarantees compared to state licenses. Recognition of « qualified custodian » status at the federal level opens doors to the largest treasuries and most reserved funds. This dynamic ultimately benefits end clients who will have regulated and supervised partners for their digital asset custody needs. The difference between a regulated custodian and an unregulated custodian could become a determining factor in institutional treasurers’ decisions.

On the side of smaller crypto startups, this concentration of regulatory charters causes concern. The resources necessary to obtain equivalent charters are enormous and exceed the capacities of most sector companies. This dynamic risks accelerating market concentration around dominant players who have the financial means to invest in regulatory compliance and banking infrastructure. Small players could find themselves forced to find partnerships with large regulated platforms to access the institutional market.

Outlook

If Payward’s application is approved, PNTC would become the latest major crypto exchange to have a federal trust framework. This approval would allow Kraken to expand its offering to American institutional clients who require a federally recognized qualified custodian. The custody offering could extend to regulated tokens, tokenized assets and traditional cryptocurrencies, meeting the diverse needs of corporate treasurers and investment funds. This logical expansion of services could generate significant revenues for the Payward group in the years to come.

The timeline for OCC application evaluations remains unspecified. The regulatory process involves thorough examinations of applicants’ compliance programs, internal controls and governance. For Payward, the experience gained with Kraken Financial, recent acquisitions aimed at strengthening regulatory capabilities, and massive compliance investments represent significant assets. However, sector estimates suggest the process could take several months, or even more than a year, before a final OCC decision. Applicant companies must demonstrate patience and perseverance throughout this process.

In the medium term, this regulatory strategy clearly forms part of preparations for a potential Kraken initial public offering. Companies preparing IPOs are generally required to demonstrate a solid governance framework and regulatory compliance at all levels. Possession of federally approved banking and trust charters strengthens the platform’s credibility with institutional investors and regulators who would examine a future listing application. Rumors of a future Kraken IPO have been circulating for several years, and this accumulation of regulatory charters could be the prelude to such an operation.

Sector observers also note that this regulatory consolidation dynamic could reshape the competitive landscape of the American crypto sector. Exchanges that fail to secure equivalent charters risk finding themselves in a weaker position. Institutional clients, increasingly sensitive to regulatory risks, could prefer regulated partners like Kraken or Coinbase. This dynamic of « regulatory capture » benefits the best-financed players and those most proactive in their compliance approach. The American crypto ecosystem risks transforming into a regulated oligopoly in which a few dominant players control access to the institutional market.

Sources

• Kraken parent goes for the OCC charter in bid to become a federal crypto bank — CoinDesk (May 8, 2026)
• Payward files application for OCC National Trust Company, deepening commitment to regulated digital asset infrastructure — Kraken Blog (May 8, 2026)
• Kraken Parent Payward Seeks US Federal Trust Charter — The Defiant (May 8, 2026)
• Kraken parent applies for OCC national trust charter after $600 deal — CryptoBriefing (May 8, 2026)