Payward Inc., the parent company behind cryptocurrency exchange Kraken, has filed an application with the Office of the Comptroller of the Currency for a national trust bank charter. The proposed entity, if approved, would operate as a federally regulated trust company focused solely on digital asset custody services.
A federal path for crypto custody
The OCC charter would allow Payward to hold digital assets on behalf of clients under federal oversight, a structure that currently exists for traditional trust companies. National trust banks are subject to regular examinations and capital requirements set by the OCC, giving customers a layer of regulatory protection that state-level trust companies may not always provide.
Digital asset custodians hold private keys and manage the safekeeping of cryptocurrencies and tokens. Federal charters have become a sought-after credential in the crypto industry because they signal compliance with banking laws and can make it easier for institutional investors — pension funds, endowments, asset managers — to allocate money to digital assets. Without a regulated custodian, many large investors have stayed on the sidelines.
What the filing means for Kraken
Kraken already operates a custody arm under state charters in New York and Wyoming. A federal trust charter would let Payward offer custody services nationally without needing separate licenses in every state. It would also place the company under the same regulator that oversees JPMorgan Chase and Bank of America, at least for the trust business.
The filing comes as the OCC has signaled openness to crypto-related charters. In 2020 the agency issued interpretive letters clarifying that national banks could provide custody services for digital assets, and it has since approved a handful of similar applications from other crypto firms. Payward's application is the latest in that line.
Next steps
The OCC will now review the application, a process that typically takes several months. Payward did not provide a timeline for a decision. The charter, if granted, would create a federally regulated trust company that could serve as a bridge between the crypto sector and traditional finance — but only after the OCC signs off on the details.
