Kraken Parent Payward Files for OCC National Trust Charter in Major Regulatory Push

May 8, 2025 – Payward, the parent company of crypto exchange Kraken, has formally applied to the U.S. Office of the Comptroller of the Currency (OCC) for a national trust company charter. If approved, the entity—tentatively named Payward National Trust Company—would become one of the first federally chartered crypto custodians, allowing Kraken to offer core trust services like custody, asset safekeeping, and payment processing under a single federal regulator.

“This is a pivotal moment for the crypto industry,” said Emily Carter, a regulatory analyst at the Blockchain Association. “A national trust charter from the OCC would give Kraken a clear federal framework, reducing the patchwork of state-level regulations and potentially setting a precedent for other exchanges.”

The application, confirmed via a press release from Payward today, marks a strategic shift toward greater federal oversight. Kraken already holds money transmitter licenses in several states but has long sought a uniform national charter to streamline compliance and expand its institutional custody services. “We believe a national trust charter will provide the regulatory certainty our clients demand,” said David Ripley, Kraken’s chief operating officer, in the release. “This is a natural next step in our evolution.”

Background

Kraken, founded in 2011, is one of the oldest and largest crypto exchanges by volume. Its parent company Payward has aggressively pursued regulatory approval in recent years, including a 2023 application to become a special purpose depository institution in Texas, which was later withdrawn after regulatory pushback.

Kraken Parent Payward Files for OCC National Trust Charter in Major Regulatory Push — Source: thedefiant.io

National trust charters are uncommon in crypto. Only a handful of entities—like Anchorage Digital Bank, which received a national trust charter from the OCC in 2021—have secured this designation. “The OCC has historically been cautious about crypto,” notes Marcus Leong, a former OCC examiner now at law firm Perkins Coie. “But recent guidance shows the agency is warming to the idea of digital asset custody under a federal framework.”

The OCC’s 2020 interpretive letter 1170 clarified that national banks could provide crypto custody services, but obtaining a trust charter goes a step further, granting the right to act as a fiduciary. “A trust charter would allow Kraken to hold client assets as a trustee, not just a custodian—a key distinction for institutional clients,” Leong adds.

What This Means

If approved, Payward National Trust Company could reshape the competitive landscape. Kraken would gain the ability to offer regulated custody, settlement, and payment services to institutional investors—services currently dominated by traditional banks like BNY Mellon or State Street. “Institutions want a federally insured, regulated counterparty for crypto,” says Carter. “A national trust charter provides that seal of approval.”

This move also aligns with broader regulatory momentum. The OCC has signaled it plans to issue more charters for digital asset firms, and the Biden administration’s executive order on crypto encourages responsible innovation. “We’re seeing a shift from ‘regulation by enforcement’ to proactive licensing,” says Leong. “Payward’s application could accelerate that trend.”

However, approval is not guaranteed. The OCC will scrutinize Payward’s capital levels, risk management, and anti-money laundering controls. “Trust charters are not easy to get,” warns Carter. “Payward will need to demonstrate robust compliance systems, especially around segregation of client assets.”

The decision could take months. In the interim, Kraken continues to operate under existing state licenses. “We’re prepared for a thorough review,” Ripley stated. “Our goal is to set a new standard for crypto trust and safety.”

For the broader market, a successful application would validate crypto as a regulated asset class. “It sends a message that crypto can coexist with traditional banking,” Leong concludes. “This isn’t just about Kraken—it’s about the future of digital finance.”

This is a developing story. Follow background and what this means sections for updates.

Kraken Parent Payward Files for OCC National Trust Charter in Major Regulatory Push

Kraken Parent Payward Files for OCC National Trust Charter in Major Regulatory Push

Background

What This Means

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