Crypto exchange Kraken's parent company, Payward, has formally applied for a national trust company charter from the U.S. Office of the Comptroller of the Currency. The application, announced in a press release on May 8, would create a federally regulated entity called Payward National Trust Company if approved.
What the charter would allow
A national trust charter puts a company under the OCC's supervision — the same regulator that oversees traditional banks. For a crypto firm, that means offering custody, fiduciary, and other trust services under federal rules rather than a patchwork of state licenses. Payward already runs Kraken, one of the oldest U.S. crypto exchanges, and the move signals a push to bring more of its operations under federal oversight.
The OCC has granted similar charters to a handful of digital-asset firms in recent years, but the process is rigorous. Applicants must meet capital requirements, demonstrate sound risk management, and pass a thorough review of their business model. Payward hasn't disclosed how much capital it's committed or a timeline for the OCC's decision.
Why a trust charter matters for crypto companies
For crypto firms, a federal trust charter is a badge of legitimacy. It means the company can offer services like digital-asset custody to institutional clients without needing separate licenses in every state. It also brings the firm under federal anti-money-laundering rules and regular examinations — a trade-off that many in the industry see as worth it for the credibility it provides.
Payward's application comes at a time when U.S. regulators are tightening scrutiny on crypto. The OCC itself has shifted its stance under different administrations, at times encouraging crypto innovation and at other times warning banks away. A trust charter doesn't automatically clear the path for all of Payward's activities — Kraken still faces a lawsuit from the Securities and Exchange Commission over whether some of its listed tokens are unregistered securities.
What happens next
The OCC will now review Payward's application, a process that typically takes months. The agency can approve it, deny it, or ask for more information. Payward hasn't said when it expects a decision, but the filing alone puts the company one step closer to becoming a federally chartered trust provider — a status few crypto firms have achieved.
