Kraken's parent Payward seeks federal trust charter to boost crypto custody
Payward, the parent company of crypto exchange Kraken, has filed for a national trust company charter with the U.S. Office of the Comptroller of the Currency (OCC). The move aims to strengthen its position in digital asset custody and attract more institutional clients. If approved, the new entity would operate under stricter federal oversight than state-level regulations allow. The proposed charter would create Payward National Trust Company (PNTC), a dedicated institution for digital asset custody. This follows Kraken Financial’s existing Wyoming SPDI charter, granted in 2020, which already allows limited banking services for cryptocurrencies. A national trust charter would expand operations nationwide, removing the need for multiple state licences.
The application aligns with Payward’s broader U.S. regulatory strategy. Co-CEO Arjun Sethi highlighted that a federal trust company offers the legal certainty institutions demand, setting a new standard for custody infrastructure. PNTC would leverage Payward’s existing compliance, risk management, and custody systems while operating under direct OCC supervision.
This push comes as U.S. regulators adopt a more industry-friendly stance toward digital assets. Crypto firms are increasingly pursuing federal charters to gain legitimacy and streamline operations. Payward has also expanded its services in 2025 by acquiring NinjaTrader, Bitnomial, and Reap Technologies, moves that signal preparation for a potential public listing. If approved, PNTC would provide bank-level custody protections for institutional clients. The charter would reduce reliance on patchwork state regulations and place Payward under consistent federal oversight. The company’s regulatory expansion continues as it positions itself for wider adoption by traditional finance institutions.
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