Payward, the parent company of cryptocurrency exchange Kraken, has applied for a National Trust Bank Charter from the Office of the Comptroller of the Currency (OCC). The move signals Kraken's push to become a federally regulated bank, a step beyond the state-level license it already holds in Wyoming.
What the charter would allow
A federal banking charter would let Kraken operate across all U.S. states without needing separate licenses in each jurisdiction. Unlike a standard bank charter, a National Trust Bank Charter allows the holder to offer fiduciary services—managing assets on behalf of clients—and to hold custody of digital assets. That's a key capability for a crypto exchange that stores billions of dollars in customer funds.
Kraken already has a Wyoming Special Purpose Depository Institution (SPDI) license, which grants it the ability to serve as a custodial bank under state oversight. But a federal charter would elevate Kraken's regulatory standing, putting it under the direct supervision of the OCC rather than a patchwork of state regulators.
The application comes as U.S. regulators tighten scrutiny of crypto firms. Several exchanges have faced enforcement actions over alleged securities violations and anti-money-laundering failures. A federal charter could give Kraken a clearer legal path to offer new products, like crypto lending or tokenized deposits, while avoiding the jurisdictional conflicts that have tripped up competitors.
If approved, Payward would join a small group of crypto-focused firms—Anchorage, Protego, and Paxos—that have secured national trust charters. The OCC has been cautious about granting new charters since 2022, when it paused its review of crypto applications under the previous administration.
The OCC will now conduct a public comment period and a thorough review of Payward's application, including its capital reserves, management team, and compliance systems. The process typically takes six months to a year. Kraken's existing Wyoming license remains active, and the company says it will continue to serve U.S. customers through that structure while the federal application is pending.
One open question: how the OCC will treat Kraken's international operations. Payward also runs Kraken's global exchange, which services clients outside the U.S. Federal banking regulations often impose restrictions on cross-border activities, and the OCC may require Payward to ring-fence its U.S. operations from its foreign ones.
