Kraken Parent Payward Files for OCC Charter in Push to Become a Bank

Payward, the parent company of crypto exchange Kraken, has applied for a national trust company charter with the US Office of the Comptroller of the Currency (OCC). If approved, the move would establish Payward National Trust Company, allowing it to offer fiduciary custody and other services primarily for digital assets.

Kraken co-CEO Arjun Sethi said it was about getting the framework right so markets can scale with clarity and interoperability.

The OCC has approved similar applications from Coinbase, Ripple Labs, BitGo, Circle, Fidelity Digital Assets, and Paxos. The agency is under scrutiny for its approval process as it also considers an application from World Liberty Financial, the crypto company co-founded by President Trump.

Payward already operates a Special Purpose Depository Institution in Wyoming and holds a Federal Reserve master account, giving it direct access to the US payment system.

Meanwhile, Kraken continues to eye a US IPO. Sethi said in May the company was about 80% ready to go public by 2027. The exchange has also closed acquisitions of Bitnominal and Reap and partnered with MoneyGram for global crypto-to-cash withdrawals.