National Trust Company Proposal Places Payward Closer to the U.S. Banking System

Payward’s OCC filing signals rising demand for federally regulated crypto custody in U.S. markets.

Payward has moved closer to the U.S. banking system with a new regulatory filing. Approval would allow Payward to offer federally regulated digital asset custody services nationwide. Growing institutional interest in compliant crypto infrastructure continues to push major firms toward regulated banking models.

Kraken Parent Targets Federal Trust Charter With New Custody Push

Payward, the parent company of crypto exchange Kraken, has applied for a U.S. national trust company charter with the Office of the Comptroller of the Currency. This would allow the firm to launch Payward National Trust Company, a federally regulated entity focused on digital asset custody services. 

The firm said the proposed trust company would serve institutional investors and individual clients seeking bank-level custody services for digital assets. Operations would fall under OCC supervision, giving clients access to a federally regulated qualified custodian.

Arjun Sethi, co-CEO of Payward and Kraken, described the filing as part of the company’s long-term regulatory strategy. He said institutions need greater clarity and stronger legal structures before committing deeper capital to digital assets.

Payward plans to build the trust company around its existing custody systems, compliance programs, and affiliated regulated entities. Company executives said the structure would widen access for U.S. clients seeking regulated custody arrangements.

Wyoming Banking License Sets Stage for Payward’s Federal Expansion Plans

Payward already operates Kraken Financial, a Wyoming special-purpose depository institution designed for digital asset services. According to the release, the Wyoming charter and proposed national trust company would serve different roles within Payward’s broader banking plans.

Sethi said the OCC application, alongside Kraken Financial, supports the company’s push toward a regulated digitally native financial system.

Federal banking regulators have recently shown greater openness toward digital asset firms seeking charters. Several crypto-focused firms secured approvals or conditional approvals over recent months, including Coinbase, Circle, Ripple, BitGo, Paxos, and Fidelity Digital Assets.

Payward has also expanded through acquisitions in recent months. Earlier this week, the company agreed to acquire stablecoin firm Reap Technologies in a $600 million deal. Last month, it acquired derivatives exchange Bitnomial for $550 million.

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