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Payward, the parent company of cryptocurrency exchange Kraken, disclosed on Friday that it has filed an application with the Office of the Comptroller of the Currency (OCC) seeking approval for a National Trust Company charter.
A national trust company charter would allow Payward to set up a federally regulated custody business under OCC oversight. The company said the purpose is to broaden access for institutional clients that require a federally regulated qualified custodian.
What It Means For Kraken
In its release, Payward explained that if approved, the application would establish Payward National Trust Company (PNTC). Kraken’s parent company said it expects to serve both institutional clients and individual customers looking for regulated, trust-based custody and related services for digital assets.
The company also stated that it plans to build on Payward’s existing infrastructure, along with its risk management, compliance programs, and regulated affiliates, positioning PNTC to deliver custody services in a secure and compliant manner.
Arjun Sethi, Co-CEO of Payward and Kraken, said the company’s long-standing view is that digital assets need robust and transparent regulation to grow responsibly.
The executive described the national trust company model as the kind of certainty institutions look for and said the charter would help create the infrastructure required for “the next generation of custody.”
Sethi emphasized that the effort is not about “being first,” but about getting the framework right so markets can scale with clarity, interoperability, and long-term expectations from clients as the technology matures.
Kraken’s co-CEO also linked the charter effort to Payward’s broader banking strategy. He described Kraken Financial and the work with the OCC as complementary parts of an initiative aimed at advancing a more “digitally native” financial system that is efficient and accessible.
He pointed to Payward’s Wyoming SPDI and its Federal Reserve master account as the foundation for the company’s approach, and he said adding a national trust company would expand what Payward can offer clients.
Critics Question The OCC’s Crypto Approach
As previously reported by Bitcoinist, the OCC has conditionally approved national trust bank charters for six crypto firms: Circle, Ripple, BitGo, Fidelity Digital Assets, and Paxos.
The last of those approvals came earlier last month, when Coinbase received conditional approval from the OCC to establish Coinbase National Trust Company. Still, the OCC’s approvals have faced criticism.
Since last year, banking lobbyist groups have pushed back against the OCC’s decision to approve crypto-related charters, arguing that the OCC is stretching the definition and historical purpose of the national trust bank charter.
Rebeca Romero Rainey, president and CEO of the Independent Community Bankers of America, said the conditional approvals could endanger consumers and result in institutions that the OCC may not be able to manage effectively.
She also argued that the new framework could allow stablecoin operators to access the federal banking system without the same level of capital and regulatory requirements that traditional banks must meet.
Featured image created with OpenArt, chart from TradingView.com
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