Kraken Seeks OCC Trust Charter to Expand Regulated Crypto Custody in the U.S.

Kraken is seeking an OCC national trust company charter to expand its regulated crypto custody business in the U.S., a move that could give institutions bank-like storage for digital assets under direct federal supervision.

• Payward filed for an OCC national trust company charter
• The proposed entity would be Payward National Trust Company (PNTC)
• The focus is fiduciary custody and other regulated digital asset services
• The main target is institutional investors wanting stronger protections
• The move fits Kraken’s broader multi-charter strategy and possible IPO plans

Kraken’s parent company, Payward, has applied to the U.S. Office of the Comptroller of the Currency for a national trust company charter, aiming to turn its custody arm into a federally supervised business built for institutions. If approved, the new entity would operate as Payward National Trust Company, or PNTC, and offer custody services designed to look a lot more like traditional finance — just without the stale wallpaper and the optional tie.

The pitch is straightforward: institutions want crypto custody that is regulated, legally clear, and not held together by wishful thinking and a Discord thread. Fiduciary custody means the company would hold assets for clients with a legal duty to act in their best interests. In practice, that matters a lot for bitcoin, ether, and other digital assets that institutions want to hold without taking on unnecessary operational risk.

“The charter would provide the regulatory certainty institutions need while helping build the next generation of digital asset custody solutions.” — Arjun Sethi, Kraken Co-CEO

That’s the heart of it. Big money does not want cowboy custody. It wants a clear legal framework, federal oversight, and a counterparty that can survive the due diligence grill from lawyers, auditors, and compliance teams who are paid to ask, “What happens if this blows up?” Kraken is betting that an OCC trust charter can answer that question in a way that makes institutions comfortable enough to put serious capital on the table.

The filing also reflects a wider shift in crypto. The industry’s biggest players are no longer just chasing trading volume from retail degens and momentum tourists. They’re building the infrastructure that institutions actually use to store, move, and access digital assets. In other words, crypto firms are trying to become the plumbing of the system, not just the flashy faucet on the front end.

That trend has a simple reason: custody is one of the biggest bottlenecks for institutional crypto adoption. Banks, asset managers, corporates, and funds want secure storage, regulatory clarity, and a framework that won’t make their risk committees spit out their coffee. A national trust company charter can help provide exactly that. It does not eliminate risk — nothing does — but it can make the risk legible, and that’s often what opens the door.

Kraken is also making the move during a more favorable U.S. regulatory climate under the Trump administration, which has generally been seen as more open to crypto than the previous “regulate first, ask questions later” posture. That does not mean regulators are rolling out a red carpet. It means the odds of serious crypto firms getting a fair hearing are better than they were before, and that matters when you’re trying to build regulated financial infrastructure instead of just another token casino. For more context on the move, see Kraken’s OCC trust charter bid.

The trust charter is only one piece of Kraken’s larger expansion plan. Payward has been on an acquisition spree that makes the company look less like a simple exchange and more like a full-stack financial platform in the making.

In 2025, Payward completed a $1.5 billion acquisition of NinjaTrader, adding more trading infrastructure to the mix. In April, it agreed to buy Bitnomial for up to $550 million. That deal brings in licenses tied to brokerage, clearing, and exchange operations under the Commodity Futures Trading Commission, or CFTC. Those licenses matter because they widen Kraken’s regulated reach into derivatives and market infrastructure — not exactly sexy stuff, but the boring pieces are often the ones that make the money.

Payward also acquired Reap Technologies in a $600 million deal aimed at expanding stablecoin payments and card infrastructure in Asia. That move shows Kraken is not just thinking about custody in isolation. It’s building around payments, trading, and settlement, with stablecoins increasingly serving as the connective tissue. Love them or hate them, stablecoins have become one of the most practical crypto use cases out there, especially when the banking system moves like it’s allergic to speed.

Kraken already has one regulated banking-style foothold through Kraken Financial, which launched in Wyoming in 2020 as a special purpose depository institution, or SPDI. Wyoming has long been one of the more crypto-friendly U.S. states, and Kraken Financial became the first digital asset bank to receive a Federal Reserve master account. For readers who do not live and breathe banking jargon, a Fed master account is access to the central banking system’s core infrastructure. That’s a big deal. It means direct access to the rails that move money at scale, rather than depending entirely on a middleman.

Payward says the OCC filing is part of a broader “multi-charter strategy” designed to combine state and federal oversight. Put more plainly, Kraken wants multiple layers of licensing so it can operate with flexibility at the state level while also earning the credibility that comes with federal supervision. That’s a smart move if you’re trying to become a durable institution rather than a hype-driven exchange that peaks with a Super Bowl ad and a lawsuit.

There’s a strong bullish case for this path. If Kraken can offer secure, compliant, federally supervised crypto custody, it could help unlock more institutional capital for bitcoin and other digital assets. That’s not a small thing. Institutions are still sitting on the sidelines in large part because custody remains a headache. They want to know who holds the keys, who gets audited, and who gets blamed if things go sideways. Better custody infrastructure can reduce that friction and make it easier for long-term money to enter the market.

For bitcoin specifically, this matters because the asset’s institutional adoption depends heavily on custody quality. Bitcoin can be self-custodied, of course, and that remains one of its defining strengths. But large funds and firms often need regulated intermediaries for compliance, reporting, and operational reasons. The ideal is not “everyone trusts a custodian forever.” The ideal is having enough robust options that institutions can enter the market without compromising security or legal clarity.

There’s also a harder truth here: crypto keeps drifting closer to traditional finance because institutions demand it. That’s not automatically a betrayal of the mission, but it does expose a tension at the center of the industry. Bitcoin was built to reduce reliance on trusted third parties. Yet if you want massive institutional adoption, you usually need more third parties, not fewer. The irony is thick enough to spread on toast.

That tension cuts both ways. On one hand, regulated custody can bring capital, legitimacy, and better infrastructure. On the other, it can normalize the same gatekeeping structures crypto was supposed to challenge. A federally supervised custodian may be safer, but it is still a custodian. It still concentrates control, creates chokepoints, and puts more power in the hands of institutions. That’s not necessarily bad — it may be necessary — but it should not be confused with decentralized ownership.

Kraken is clearly choosing the pragmatic route. It is building licenses, buying infrastructure, and positioning itself as a serious player in regulated digital asset services. That could make the company stronger and more resilient, especially if it continues moving toward an IPO. It could also make Kraken more attractive to institutions that want exposure to crypto without dealing with the wild west nonsense that has burned so many firms before.

At the same time, the move raises a fair question: is this crypto maturing, or is it just learning how to wear a nicer suit? The answer is probably both. Markets evolve. Businesses adapt. And if the goal is to move bitcoin and other digital assets into mainstream financial use, then better custody is a very real part of the job. But no one should pretend that federal approval magically fixes everything. Trust charters take time, regulatory scrutiny can be expensive, and custody businesses are still trust-heavy, low-margin operations compared with the juicier fantasy of easy trading fees and speculative froth.

What is Kraken trying to do?

Kraken is trying to expand beyond exchange services into federally regulated crypto custody and broader financial infrastructure. The goal is to serve institutional clients that want stronger protections and clearer rules.

Why does an OCC trust charter matter?

It gives Kraken a path to offer custody under direct OCC supervision, which can make the company more credible to banks, asset managers, and other large institutions.

Who is the main customer?

The target is mainly institutional investors and clients seeking bank-level crypto custody protections. Retail users may benefit indirectly, but this is not a consumer-first play.

How does this fit Kraken’s bigger strategy?

It lines up with Kraken’s acquisitions, its regulated banking-style footprint in Wyoming, and its push toward becoming a full-stack digital asset platform.

What does this mean for bitcoin adoption?

Better custody can help more institutions hold bitcoin safely and legally, which could support broader adoption. It does not replace self-custody, but it can widen the on-ramp for serious capital.

Is this bullish for crypto?

Yes, especially for institutional adoption and regulated bitcoin custody. But it also highlights the ongoing tension between decentralization and the pull of traditional finance. Crypto may be building a freer system — or just rebuilding the old one with better software and fewer neckties.