Kraken Parent Company Applies for Federal OCC Banking Charter

Crypto exchange giant Kraken is making a major move deeper into the U.S. financial system after its parent company, Payward, officially applied for a national trust bank charter with the Office of the Comptroller of the Currency (OCC). If approved, the charter would allow Kraken to operate a federally regulated trust bank focused on digital asset custody and institutional crypto services. 

Kraken Wants to Become a Federally Regulated Crypto Bank

The application would establish a new entity called Payward National Trust Company, giving Kraken the ability to provide bank-level custody and fiduciary services under direct federal oversight. The company says the trust structure is designed primarily for institutional clients seeking regulated digital asset storage and settlement infrastructure. 

Kraken co-CEO Arjun Sethi said the move reflects the company’s belief that regulated infrastructure will become essential for large-scale crypto adoption. According to Sethi, institutions increasingly want the same legal protections and compliance standards found in traditional banking before allocating serious capital into digital assets.  The charter would also allow Kraken to expand certain services nationwide without needing separate state-by-state licensing frameworks that often slow down financial expansion in the United States. 

Kraken Builds on Its Existing Wyoming Crypto Bank

This is not Kraken’s first move into banking infrastructure. The company already operates Kraken Financial, a Wyoming-based Special Purpose Depository Institution (SPDI) that became one of the first crypto-native banks in the U.S. to receive a Federal Reserve master account. 

Kraken says the proposed OCC trust charter would complement—not replace—its Wyoming banking operations. The company believes operating under both state and federal regulatory frameworks could help it serve a wider range of institutional and enterprise customers.  The dual-structure strategy mirrors how traditional financial institutions often operate multiple regulated entities to provide specialized services across different markets and jurisdictions.

Crypto Firms Are Racing Toward Banking Licenses

Kraken’s application comes during a broader industry-wide push by crypto firms seeking federal banking access and regulated financial status in the United States. Companies including Coinbase, Ripple, BitGo, and Circle have all explored or pursued federal trust bank structures as crypto regulation evolves. 

Federal trust charters are especially attractive because they can provide firms with stronger institutional credibility, direct access to payment infrastructure, and the ability to operate under a single federal regulator rather than navigating dozens of state compliance systems. The push also reflects changing political and regulatory attitudes toward crypto following years of tension between digital asset firms and U.S. regulators. Many companies now believe the environment is becoming more favorable for regulated crypto banking expansion. 

Institutional Custody Is Becoming a Massive Crypto Business

One of the biggest motivations behind Kraken’s move is the rapidly growing institutional custody market. Large financial firms increasingly require qualified custodians before they can legally hold digital assets for clients or investment products. 

If approved, Payward National Trust Company would allow Kraken to market itself as a federally regulated qualified custodian—an important designation for hedge funds, asset managers, pension funds, and corporations entering crypto markets. The timing is also notable as institutional participation in Bitcoin ETFs, tokenized assets, stablecoins, and blockchain-based financial products continues accelerating globally.

Kraken Continues Expanding Beyond Crypto Trading

Kraken has aggressively expanded beyond being just a crypto exchange over the past year. The company now offers stocks, ETFs, derivatives, staking services, tokenized assets, and payment products through various regulated subsidiaries. 

The exchange has also been preparing for a potential future IPO while building deeper relationships with traditional financial infrastructure providers. Analysts believe obtaining a federal trust charter could significantly strengthen Kraken’s long-term positioning with institutional investors and public markets.