- Kraken parent Payward seeks a US trust bank charter to expand regulated crypto custody services.
- Payward deepens its Wall Street push through Reap and Bitnomial acquisitions tied to crypto finance.
- Kraken aims to bridge traditional banking and blockchain through federally regulated infrastructure.
Kraken’s parent company, Payward, has applied for a national trust bank charter in the United States as crypto firms push deeper into regulated finance. The application, filed with the Office of the Comptroller of the Currency, would allow the company to launch a federally supervised trust entity focused on digital asset custody.
In a blog post, Payward said the proposed Payward National Trust Company would provide custody and trust services for institutional and high-net-worth clients across the U.S. However, the company clarified that it does not plan to operate as a traditional commercial bank.
Instead, Payward wants a unified federal framework that supports crypto custody, settlement, and related financial services under stricter regulatory oversight. The filing also strengthens Kraken’s broader expansion strategy ahead of its anticipated public market debut.
Kraken Expands Banking and Infrastructure Strategy
Payward Co-CEO Arjun Sethi said the OCC application forms part of the company’s broader push toward regulated digital finance. He argued that institutional investors need clearer rules and stronger safeguards before crypto markets can mature further.
“A national trust company provides the certainty institutions require,” Sethi said. He also noted that regulated infrastructure could help connect traditional finance systems with blockchain-based networks more efficiently.
The filing builds on Kraken Financial, Payward’s Wyoming-based Special Purpose Depository Institution. The company also holds access to a Federal Reserve master account, giving it a stronger foothold inside the regulated U.S. financial system.
Payward said the different structures would support separate parts of its growing banking and custody strategy. Consequently, the company continues shifting beyond its role as a standard cryptocurrency exchange.
At the same time, Kraken continues expanding through acquisitions and strategic investments tied to digital payments infrastructure. This week, Payward agreed to acquire stablecoin payments company Reap Technologies through a cash-and-stock deal that reportedly valued the firm at about $20 billion.
Crypto Firms Move Closer to Wall Street
Last month, Payward agreed to acquire crypto derivatives platform Bitnomial in a deal worth up to $550 million. The acquisition gives Kraken access to regulated U.S. derivatives infrastructure operating under Commodity Futures Trading Commission oversight. Bitnomial already holds key licenses covering exchange, clearing, and brokerage services tied to digital assets.
Kraken’s expansion reflects a wider shift across the crypto industry as major firms move closer to traditional financial systems. Companies including Coinbase and Circle have also pushed into regulated custody, payments, and banking-related services.
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