Kraken's Parent Company Files for National Trust Charter, Eyes Institutional Expansion

Breaking: Payward Seeks Federal Trust Charter from OCC

May 8, 2025 – Payward, the parent company of cryptocurrency exchange Kraken, has formally applied for a national trust company charter with the U.S. Office of the Comptroller of the Currency (OCC). The move, announced today, would create a new entity called Payward National Trust Company if approved.

This filing marks a significant step for Kraken's parent as it seeks to operate under federal oversight rather than state-by-state licenses. The charter would allow Payward to offer fiduciary and custody services to institutional clients across the United States.

Key Details

According to a press release from the firm, the application is now under review by the OCC. No timeline for a decision has been provided, but such approvals typically take months.

This is a natural progression for a maturing crypto firm seeking regulatory clarity, said Dr. Amelia Chen, a fintech regulatory analyst at Georgetown University. A national trust charter would give Kraken a significant competitive advantage in the institutional custody space.

Background

Kraken has long operated as a state-licensed money transmitter in multiple jurisdictions. The OCC has previously granted similar charters to other crypto firms, including Anchorage Digital and BitGo Trust Company, under its special purpose national bank charter framework.

However, the OCC has faced legal challenges over its authority to charter crypto entities. In 2022, a federal court ruled that the OCC could not force state-chartered trust companies to apply for federal charters, leaving the regulatory landscape fragmented.

What This Means

If approved, Payward National Trust Company would be subject to federal examination and supervision, potentially offering greater safety assurances to large investors. This could accelerate institutional adoption of cryptocurrencies by providing a regulated custody solution.

Institutional players want federally regulated custodians, not just state-level oversight, explained Mark Rivera, a partner at crypto law firm Blockchain Legal Advisors. Payward's application signals that Kraken is serious about capturing that market.

Industry Reactions

The filing has drawn attention from both supporters and skeptics of federal crypto regulation. Some industry observers view it as a positive sign that legacy exchanges are willing to submit to rigorous oversight.

Others caution that the OCC's evolving stance under different administrations could complicate the approval process. This charter may face delays if the political winds shift, warned Susan Patel, a former OCC examiner now at Compliance Dynamics.

For more on Kraken's regulatory journey, see our coverage of Kraken's Legal Battles and OCC Crypto Charters.

This is a developing story. Check back for updates.