Kraken Seeks Federal Banking Charter to Expand Crypto Custody Services

TLDR

• Kraken’s parent entity Payward has submitted an application for a national trust company charter to the OCC
• Approval would establish Payward National Trust Company, providing federally supervised digital asset custody services
• This application complements Kraken’s current Wyoming SPDI banking license and Federal Reserve master account access
• The company has allocated more than $2.6 billion toward recent strategic acquisitions, including NinjaTrader, Bitnomial, and Reap Technologies
• According to co-CEO Arjun Sethi, Kraken has achieved roughly 80% readiness for a possible public offering targeted for 2027

Payward, which operates the Kraken cryptocurrency exchange, has submitted a formal application to the U.S. Office of the Comptroller of the Currency (OCC) seeking a national trust company charter. The submission was made public on Friday, May 8, 2026.

Should regulators grant approval, this charter would establish a separate legal entity named Payward National Trust Company (PNTC). The new organization would deliver custody and fiduciary solutions under federal regulation, with a primary focus on digital assets.

The OCC has previously granted comparable authorizations to several major industry players, including Coinbase, Ripple Labs, BitGo, Circle, Fidelity Digital Assets, and Paxos. Payward aims to join this exclusive group of federally chartered crypto institutions.

Building on Existing Banking Infrastructure

Payward’s regulatory foundation already includes a Wyoming Special Purpose Depository Institution (SPDI) charter held through Kraken Financial, which was secured in 2020. Kraken Financial achieved a significant milestone as the first digital asset banking entity to obtain a Federal Reserve master account, providing direct integration with the U.S. payments infrastructure.

The proposed OCC trust charter would operate in conjunction with the existing Wyoming authorization. Payward characterizes this approach as a “multi-charter” framework, incorporating both state-level and federal regulatory supervision.

According to the proposal, PNTC would leverage Payward’s established compliance infrastructure and risk management protocols. The primary objective is addressing the needs of institutional investors requiring a federally regulated qualified custodian.

The OCC operates under the leadership of Jonathan Gould, appointed during the Trump administration. The regulatory body greenlit multiple crypto charter applications in a significant wave during December 2025.

Acquisition Spending and IPO Plans

Payward has executed an aggressive expansion strategy through strategic acquisitions. During 2025, the company purchased retail futures trading platform NinjaTrader in a $1.5 billion transaction.

In April 2026, Payward entered into an agreement to acquire crypto derivatives platform Bitnomial for a deal valued at up to $550 million. This acquisition delivered a comprehensive suite of CFTC licenses encompassing brokerage, clearing, and exchange capabilities.

Most recently, the firm announced a $600 million agreement to purchase Reap Technologies, a Hong Kong-based payments company. This strategic move positions Kraken to expand into stablecoin-enabled cross-border payment solutions and card processing infrastructure throughout Asian markets.

Across these three major transactions, Payward has pledged investment exceeding $2.6 billion.

Notwithstanding this substantial acquisition activity, plans for a Kraken initial public offering remain active. Sethi indicated in May that the organization has reached “about 80% ready” status for a potential market debut by 2027.

Kraken has additionally revealed a strategic partnership with MoneyGram, supporting its broader expansion into payment services.

The OCC charter application is currently under regulatory review. The agency has not disclosed an expected timeline for rendering a determination.

The post Kraken Seeks Federal Banking Charter to Expand Crypto Custody Services appeared first on Blockonomi.