Payward, the parent company of crypto exchange Kraken, announced Friday it has filed an application with the Office of the Comptroller of the Currency for a national trust company charter.
The proposed Payward National Trust Company would provide digital asset custody services to institutional clients needing a federally regulated qualified custodian.
Co-CEO Arjun Sethi stated the filing is part of a comprehensive banking strategy, complementing Payward's existing Wyoming Special Purpose Depository Institution, Kraken Financial.
This application reflects increasing federal regulatory openness to new banking entities. Coinbase received conditional approval in April, followed by approvals for Circle, Ripple, BitGo, Paxos Trust Company, and Fidelity Digital Assets.
Comptroller of the Currency Jonathan V. Gould welcomed new entrants, stating they provide access to new products and services, ensuring a dynamic banking system.
Kraken also agreed this week to acquire Asian stablecoin firm Reap Technologies in a $600 million deal, following last month's $550 million acquisition of derivatives exchange Bitnomial. The firm filed for an IPO last November after raising $800 million at a $20 billion valuation.