Payward, the parent company of the cryptocurrency exchange Kraken, has applied for a charter from the Office of the Comptroller of the Currency to operate as a federally regulated trust company. The move adds a third layer of regulatory approval to Payward's existing Wyoming bank charter and its Federal Reserve master account.
A Third Regulatory Layer
The application comes as crypto firms push deeper into traditional finance. An OCC trust charter would place Payward under direct federal oversight, allowing the company to offer custody, fiduciary, and other trust services at the national level. The OCC has granted similar charters to a handful of crypto-focused firms, including Anchorage Digital and Protego Trust, but the agency has also tightened scrutiny in recent years.
Payward already holds a charter from the Wyoming Division of Banking as a special-purpose depository institution, a license that lets it handle both fiat and digital assets. It also has a master account at the Federal Reserve, a rare privilege for a crypto firm that gives it direct access to the Fed's payments system. The OCC application would not replace those — it would sit on top of them, creating a unified federal framework.
What an OCC Trust Charter Offers
A national trust charter allows a company to act as a trustee, custodian, or fiduciary across state lines without needing separate licenses in every state. For Kraken's institutional clients, that could mean clearer legal status for asset custody and a smoother path to offering services like stablecoin reserves or tokenized securities.
The OCC has been cautious since its 2021 guidance that national banks can hold crypto assets. Acting Comptroller Michael Hsu has called for a “level playing field” between crypto and traditional finance, and the agency has signaled it expects applicants to have strong risk management and compliance systems. Payward's application will likely face a months-long review process.
From Wyoming to Washington
Wyoming's crypto-friendly laws gave Payward an early foothold. The state's special-purpose depository charter was designed specifically for digital asset firms, and Payward was one of the first to obtain it, in 2020. That charter lets Kraken offer banking services like checking accounts and custody without being subject to the same restrictions as a traditional bank.
The Fed master account came next, in 2022, when the Federal Reserve Bank of Kansas City approved Payward's application. That account lets Payward settle payments directly with the Fed, bypassing intermediary banks. Critics at the time argued that giving a crypto company direct access to the central bank's payments system carried risks, but the Fed determined that Payward met the requirements.
Now, with the OCC application, Payward is seeking the same kind of federal recognition that traditional trust companies have held for decades. If approved, it would become one of the most regulated crypto firms in the U.S.
What Comes Next
The OCC has not set a deadline for its decision. Payward's application kicks off a review that includes background checks, an examination of its compliance program, and public comment. The agency can approve, deny, or impose conditions on the charter.
For now, Payward continues to operate under its existing licenses. The outcome of the OCC application will determine whether it can offer trust services to customers nationwide — and whether other crypto firms follow the same path.
