Why Is Payward Applying for a National Trust Charter?
Payward, the parent company of crypto exchange Kraken, has applied for a national trust company charter with the Office of the Comptroller of the Currency as competition intensifies around regulated digital asset custody in the United States.
The application seeks to establish the Payward National Trust Company, or PNTC, which would provide bank-level custody and trust services for digital assets to institutional and retail clients.
“PNTC expects to serve institutional clients and individual customers seeking regulated, bank-level custody and trust services for digital assets, leveraging Payward’s existing infrastructure, risk management, compliance programs, and regulated affiliates to deliver services in a secure and compliant manner,” the company said in a statement.
The move reflects a broader push by crypto firms to secure federally recognized regulatory structures as institutional adoption expands and compliance expectations tighten.
How Does This Fit Into the Broader Crypto Custody Race?
Payward’s filing follows similar efforts by major crypto firms seeking trust bank status through the OCC. Coinbase recently received conditional approval for its own national trust company charter, while Ripple has also secured conditional approval.
The charter structure is increasingly viewed as a strategic advantage because it provides a clearer regulatory framework for custody operations, particularly for institutions that require bank-grade safeguards and oversight before allocating capital to digital assets.
For crypto firms, trust charters also create a pathway to expand financial services without becoming full-service banks. Custody remains one of the most commercially attractive areas of digital asset infrastructure because it sits at the center of institutional trading, settlement, and asset management.
Investor Takeaway
Why Are Banks Concerned About OCC Crypto Charters?
The OCC’s willingness to grant trust charters to crypto and fintech firms has drawn opposition from parts of the traditional banking industry. A major banking trade group whose board includes JPMorgan Chase, Goldman Sachs, and Bank of America previously considered legal action against the regulator.
The group reportedly argued that the OCC was reinterpreting federal licensing standards in ways that could allow crypto firms to enter banking-related activities without being subject to the same regulatory burdens as traditional banks.
The dispute highlights a broader tension between incumbent financial institutions and digital asset firms seeking access to regulated infrastructure. While crypto companies argue that federal oversight improves transparency and operational standards, banks remain concerned about competitive and supervisory implications.
Investor Takeaway
What Does This Mean for Kraken and Institutional Crypto Markets?
Kraken and Payward have increasingly focused on institutional infrastructure as digital asset markets mature beyond retail trading. Regulated custody is becoming a foundational requirement for hedge funds, asset managers, and corporate treasury participants entering the sector.
“Our long-held belief has always been that the right path forward for digital assets runs through robust, transparent regulation,” Payward and Kraken co-CEO Arjun Sethi said in the statement. “A national trust company provides the certainty institutions require and establishes the infrastructure to build the next generation of custody.”
The application also reflects how crypto exchanges are attempting to evolve from trading venues into broader financial infrastructure providers. As regulation advances, firms with recognized custody and compliance frameworks may gain an advantage in serving institutional clients that require stricter operational controls.
