Key Highlights
- Kraken’s parent entity Payward has submitted an application for a national trust company charter through the OCC
- Approval would establish Payward National Trust Company, delivering federally supervised digital asset custody services
- This application supplements Kraken’s current Wyoming SPDI charter and direct Federal Reserve access
- Recent acquisitions by Payward exceed $2.6 billion, encompassing NinjaTrader, Bitnomial, and Reap Technologies
- Co-CEO Arjun Sethi indicates Kraken has achieved roughly 80% preparedness for a possible 2027 public listing
Payward, which operates the prominent cryptocurrency exchange Kraken, has submitted a formal request for a national trust company charter from the U.S. Office of the Comptroller of the Currency (OCC). The application was disclosed publicly on May 8, 2026.
Should regulators grant approval, the charter would authorize a fresh legal entity known as Payward National Trust Company (PNTC). This institution would deliver custody and fiduciary solutions under federal supervision, with primary focus on cryptocurrency and digital assets.
The OCC has previously granted comparable charters to Coinbase, Ripple Labs, BitGo, Circle, Fidelity Digital Assets, and Paxos. Successful processing of Payward’s submission would add the company to this exclusive roster.
Arjun Sethi, serving as co-CEO, emphasized that Payward prioritizes establishing proper regulatory foundations over racing to market. “A national trust company delivers the regulatory confidence that institutional players demand,” Sethi stated in the company’s announcement.
Leveraging Established Banking Credentials
Payward currently operates under a Wyoming Special Purpose Depository Institution (SPDI) license via Kraken Financial, originally secured in 2020. Kraken Financial achieved a milestone as the inaugural digital asset institution granted a Federal Reserve master account, enabling direct participation in the nation’s payment infrastructure.
The federal trust charter from the OCC would complement rather than replace the Wyoming authorization. Payward characterizes this approach as a “multi-charter” framework, encompassing both state-level and federal regulatory oversight.
According to the proposal, PNTC would leverage Payward’s established compliance infrastructure and risk controls. The strategic objective centers on serving institutional investors requiring federally authorized qualified custodian services.
Jonathan Gould, a Trump administration selection, currently heads the OCC. The regulatory body processed numerous crypto-related charter requests in December 2025, approving several applications.
Major Acquisitions and Public Market Ambitions
Payward has executed an aggressive acquisition strategy throughout recent months. During 2025, the company purchased retail futures trading platform NinjaTrader in a transaction valued at $1.5 billion.
April 2026 brought an agreement to acquire Bitnomial, a cryptocurrency derivatives platform, for potential consideration reaching $550 million. This acquisition delivered comprehensive CFTC licensing across brokerage, clearing, and exchange functions.
Most recently, Payward unveiled a $600 million transaction to purchase Reap Technologies, a Hong Kong-headquartered payments processor. This strategic move positions Kraken within stablecoin-enabled international payment corridors and card processing networks throughout Asian markets.
Collectively, these three acquisitions represent investment commitments surpassing $2.6 billion.
Notwithstanding this acquisition activity, plans for a Kraken initial public offering remain active. Sethi disclosed in May that internal preparations have reached approximately 80% completion toward a potential 2027 market debut.
Kraken recently formalized a strategic collaboration with MoneyGram, reinforcing its expansion into payment processing capabilities.
The OCC submission now enters the regulatory review process. Officials have not disclosed an anticipated timeline for reaching a determination on the application.
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