Kraken Parent Payward Files for National Trust Bank Charter With OCC

Payward, Inc., the parent company of cryptocurrency exchange Kraken, has filed an application with the Office of the Comptroller of the Currency (OCC) to create a federally regulated crypto bank. The application, announced on May 8, 2026, seeks a national trust company charter to establish Payward National Trust Company (PNTC), an entity designed to provide custody and other fiduciary services for digital assets under direct federal oversight. This move by a major industry player like Payward is a clear signal that the digital asset sector is maturing beyond its speculative roots. For businesses considering how to incorporate digital assets into their treasury or operations, this push for federal charters introduces a new level of stability and regulatory clarity that has been sorely lacking. If approved by the OCC, PNTC would serve both institutional clients and individual customers seeking bank-level security for their digital asset holdings. According to company statements, the new trust would leverage Payward’s existing infrastructure, risk management protocols, and compliance programs to offer its services in a secure and regulated manner. The primary goal is to attract institutional investors, many of whom are required by their own internal policies or regulations to use a federally regulated qualified custodian for asset holdings. “Our long-held belief has always been that the right path forward for digital assets runs through robust, transparent regulation,” said Arjun Sethi, Co-CEO of Payward and Kraken, in a statement. “A national trust company provides the certainty institutions require and establishes the infrastructure to build the next generation of custody.” This application is not Payward’s first venture into regulated financial services. The company already operates Kraken Financial, a Wyoming-chartered Special Purpose Depository Institution (SPDI) established in 2020. That entity made history by becoming the first digital-asset bank to secure a Federal Reserve master account, granting it direct access to the U.S. payments system. However, an SPDI is a state-level charter, whereas the new application seeks a federal charter that would allow PNTC to operate nationwide under a single, unified regulatory framework. Sethi described the two entities as “complementary pillars” in the company's broader banking strategy. The state-chartered SPDI and the proposed federally chartered trust company would serve different but overlapping purposes, allowing Payward to offer a wider range of regulated services as the U.S. regulatory landscape for digital assets evolves. In our experience, the hesitation among small and mid-sized businesses to engage with digital assets often stems from counterparty risk and regulatory ambiguity. A federally chartered custodian, supervised by the OCC, significantly mitigates these concerns. It transforms digital assets from a high-risk alternative into a class of assets that can be managed with established protocols. This development is crucial for companies looking to diversify their treasury or build new business models on blockchain technology. Navigating this evolving intersection of finance and technology requires careful planning, which is why our financial risk management services are designed to help clients understand and adapt to these changes. For guidance on integrating these new financial instruments safely, business leaders can contact C&S Finance Group LLC at csfinancegroup.com. Payward’s move follows a path already paved by competitors. Anchorage Digital became the first crypto-native company to receive a national trust charter from the OCC in 2021. That federal charter has enabled Anchorage Digital to forge partnerships with major financial players like Western Union and asset issuers such as Tether, demonstrating the significant business advantages that come with federal oversight. By pursuing its own OCC charter, Payward is positioning itself to compete directly for the same tier of institutional clients who prioritize regulatory compliance above all else. The filing comes amid a broader trend of digital asset firms seeking traditional financial charters to enhance their legitimacy and expand their services. This strategic push is part of Payward's larger expansion, which has included several acquisitions aimed at building a comprehensive, regulated financial services stack ahead of a potential initial public offering. The pursuit of federal charters has gained momentum as firms seek to provide the institutional-grade infrastructure demanded by large-scale capital. The next step is a thorough review of the application by the OCC. The agency will assess Payward's business plan, risk management frameworks, capitalization, and leadership team before making a decision. The outcome of this process will be closely watched across the financial industry, as approval could prompt other major cryptocurrency platforms to follow suit, further blurring the lines between traditional finance and the digital asset economy.