Major Exchange parent seeks US trust charter

TLDR

Kraken parent Payward has applied for a US national trust charter to launch a federally regulated crypto custody bank aimed at institutional clients.

1. Payward filed with the OCC to create Payward National Trust Company, a national trust bank focused on digital asset custody for institutions.
2. A national trust charter would make Payward a federally supervised qualified custodian, potentially unlocking demand from regulated asset managers across all 50 states.
3. The OCC review could take many months, and the outcome will signal how open federal banking regulators are to crypto exchanges holding bank?style charters.

Deep Dive

1. What Payward Is Applying For

Payward, the holding company behind Kraken, has filed an application with the US Office of the Comptroller of the Currency (OCC) to form Payward National Trust Company, a national trust bank dedicated to digital asset custody and fiduciary services for institutional and individual clients that require bank?level custody. Reports note the application appears on the OCCs digital assets licensing list and describe the new entity as a federally regulated qualified custodian that can operate across all 50 states without separate state trust licenses.

This federal trust charter is distinct from a full commercial bank license and is tailored to safekeeping and fiduciary services rather than taking retail deposits or making loans. It builds on Paywards existing Wyoming SPDI, Kraken Financial, which already holds a Federal Reserve master account.

2. Why A National Trust Charter Matters

For large investors such as asset managers, pension funds, and registered investment advisers, using a qualified custodian recognized under US securities rules is often mandatory before they can allocate to crypto through third parties. A national trust company charter from the OCC would give Payward that status and add federal oversight on top of state regimes, which can be more attractive to compliance teams.

It would also simplify Paywards footprint. Instead of stitching together multiple state charters, a national trust bank could serve clients nationwide from a single federal license, potentially strengthening Krakens pitch in the institutional custody race against players tied to Wall Street banking groups.

3. Timeline, Risks, And Signals

OCC trust applications typically face intensive scrutiny on capitalization, risk controls, compliance, and management, and publication on the OCC list does not guarantee approval or a fixed timeline. The review process can involve public comments and iterative feedback, so this is a medium term story rather than an immediate catalyst.

Key signals to watch are: OCC updates on digital asset charters, any conditional approvals or restrictions, and how competitors respond, for example by seeking their own charters or deepening partnerships with existing trust banks. A denial or heavily constrained approval would hint that federal regulators still prefer traditional banks as the main gatekeepers for crypto custody.

Conclusion

Paywards move to secure a US national trust charter reflects a broader shift in major exchanges from pure trading venues toward fully regulated financial infrastructure providers. If the OCC ultimately approves Payward National Trust Company, Krakens group could sit closer to the core of the institutional crypto stack, especially for custody and tokenized products. If regulators push back, it would reinforce the message that bank?style roles in crypto remain tightly controlled, and that exchanges must continue to rely on partnerships and state level structures instead of federal banking charters.