Kraken Parent Payward Files for OCC Charter to Enable Banking Services

Timothy Morano May 08, 2026 20:18

Kraken's parent company Payward applies for an OCC charter, aiming to establish a national trust company for regulated digital asset custody.

Kraken Parent Payward Files for OCC Charter to Enable Banking Services

Payward, the parent company of cryptocurrency exchange Kraken, has officially applied for a national trust company charter with the U.S. Office of the Comptroller of the Currency (OCC). If approved, the move would enable Kraken to expand its services into regulated digital asset custody and other banking-like operations.

In a statement, Kraken co-CEO Arjun Sethi emphasized the strategic importance of this step. “A national trust company provides the certainty institutions require and establishes the infrastructure to build the next generation of custody,” Sethi said. He underscored that the focus is on creating a robust framework to scale with market demands, rather than rushing to be first.

The OCC has already approved similar charters for other prominent crypto firms, including Coinbase, Ripple Labs, BitGo, and Paxos. This marks a growing trend of crypto companies seeking regulatory footing to offer traditional financial services alongside digital assets.

Building on Prior Regulatory Milestones

This application builds on Kraken’s earlier achievements. The company previously launched Kraken Financial in Wyoming as a Special Purpose Depository Institution (SPDI) and secured a Federal Reserve master account, granting it direct access to the U.S. payment system. These moves positioned Kraken as a pioneer in bridging crypto and traditional finance.

Should the application be approved, Payward National Trust Company would join a select group of crypto firms operating under a national framework, potentially giving Kraken a competitive edge in attracting institutional clients.

IPO Plans and Expansion

Kraken’s banking ambitions come alongside its broader expansion efforts. The company has recently acquired the crypto derivatives platform Bitnomial and announced plans to purchase the payments platform Reap. Additionally, Kraken is reportedly preparing for an initial public offering (IPO) in 2027, with Sethi stating the company is “about 80% ready.”

Kraken also continues to innovate in payment solutions, partnering with MoneyGram to enable global crypto-to-cash withdrawals, further solidifying its position as a key player in digital finance.

Regulatory Landscape

The OCC, led by Trump-era nominee Jonathan Gould, has faced scrutiny for approving digital asset charters, including applications from major firms like Circle and Fidelity Digital Assets. While such approvals signal the regulatory body’s openness to crypto innovations, they’ve also stirred debate around the broader implications for the U.S. banking system.

For Kraken, securing the OCC charter would not only enhance its regulatory credibility but also pave the way for offering a comprehensive suite of services that blend traditional banking with crypto-native solutions.

As Kraken edges closer to becoming a full-fledged financial institution, the outcome of this application could redefine how crypto companies integrate with traditional finance. With an IPO on the horizon and expanding service offerings, Kraken is positioning itself for significant growth in the years ahead.

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