Payward, the parent company of cryptocurrency exchange Kraken, has applied for a national trust company charter from the Office of the Comptroller of the Currency (OCC). The move aims to offer federally regulated custody services for digital assets, with a focus on institutional clients in the United States.
What the charter would allow
A national trust charter from the OCC would let Payward operate as a federally chartered trust company. That status typically permits a firm to hold customer assets in custody — in this case, cryptocurrencies — under federal oversight, rather than relying on a patchwork of state licenses.
For Kraken, which already serves retail and institutional customers, the charter would open a path to directly serve U.S. institutional clients who require a federally regulated custodian for their digital asset holdings. Many large investors and fund managers prefer or require such regulation before entrusting assets to a third party.
Why now
The filing comes as U.S. regulators continue to shape the rules for digital assets. The OCC has previously granted similar charters to other crypto firms, including Anchorage Digital and Paxos. Those approvals set a precedent for federally chartered crypto custody.
Payward’s application signals that Kraken sees growing demand from institutions for a regulated custody solution. The company has not disclosed a timeline for the OCC’s decision, but the process typically involves a thorough review of the applicant’s financial health, compliance systems, and risk management.
What’s at stake for Kraken’s institutional business
Kraken already offers a range of services for institutional clients, including over-the-counter trading and staking. But custody remains a key differentiator. Without a federal charter, the company has had to work through state-level trust companies or partner with other custodians to meet regulatory requirements.
If the OCC approves the application, Kraken would hold digital assets directly under a federal framework, potentially reducing costs and complexity for its institutional clients. It would also place the exchange on more equal footing with traditional financial custodians that already hold federal trust charters.
The OCC has not set a public deadline for a decision on Payward’s application.
