Kraken Seeks Federal Banking License to Expand Crypto Custody Services

Key Highlights

Table of Contents

Kraken’s parent entity Payward has submitted an application to the OCC for a national trust company charter
Approval would establish Payward National Trust Company, providing federally supervised digital asset custody services
This expansion complements Kraken’s current Wyoming SPDI charter and its Federal Reserve master account access
The company has allocated more than $2.6 billion toward recent acquisitions, including NinjaTrader, Bitnomial, and Reap Technologies
Co-CEO Arjun Sethi indicates Kraken has achieved approximately 80% readiness for a prospective public offering by 2027

The parent organization behind cryptocurrency platform Kraken, known as Payward, has submitted a formal request for a national trust company charter to the U.S. Office of the Comptroller of the Currency (OCC). This development was made public on Friday, May 8, 2026.

🚨KRAKEN PARENT MOVES TO BECOME A FEDERAL CRYPTO BANK
Payward has applied for an OCC charter, a step that would add a federally regulated trust company to Kraken’s existing Wyoming bank charter and Fed master account. pic.twitter.com/zvakKr2xXO
— Coin Bureau (@coinbureau) May 8, 2026

Should the regulatory body grant approval, this charter will establish a separate legal entity designated as Payward National Trust Company (PNTC). The new entity would deliver custody and fiduciary services under federal oversight, with a primary focus on digital asset management.

Several major crypto firms have already secured comparable authorizations from the OCC, including Coinbase, Ripple Labs, BitGo, Circle, Fidelity Digital Assets, and Paxos. Payward aims to become part of this select group pending regulatory approval.

In the official statement, Co-CEO Arjun Sethi emphasized the company’s strategic approach over speed to market. “A national trust company provides the certainty institutions require,” Sethi noted.

Leveraging Current Banking Foundations

Payward’s banking presence isn’t starting from scratch. The company operates Kraken Financial under a Wyoming Special Purpose Depository Institution (SPDI) charter, which it obtained in 2020. Kraken Financial achieved a historic milestone by becoming the first digital asset-focused bank to secure a Federal Reserve master account, granting direct connectivity to the nation’s payment infrastructure.

The proposed OCC trust charter would function in tandem with the existing Wyoming authorization. Payward characterizes this approach as a “multi-charter” framework, encompassing both state-level and federal regulatory supervision.

According to the company’s plan, PNTC would leverage Payward’s current compliance infrastructure and risk oversight mechanisms. The primary objective centers on serving institutional customers requiring a federally regulated qualified custodian.

The OCC currently operates under the leadership of Jonathan Gould, appointed during the Trump administration. The regulatory agency greenlit numerous similar cryptocurrency charter requests in December 2025.

Strategic Acquisitions and Public Market Preparation

Payward has embarked on an aggressive acquisition campaign. Throughout 2025, the company purchased retail futures trading platform NinjaTrader in a transaction valued at $1.5 billion.

In April 2026, Payward entered into an agreement to acquire cryptocurrency derivatives platform Bitnomial for a sum reaching up to $550 million. This transaction brought comprehensive CFTC licensing capabilities covering brokerage operations, clearing services, and exchange functionality.

Most recently, the firm unveiled a $600 million acquisition of Reap Technologies, a Hong Kong-headquartered payments company. This strategic purchase positions Kraken to expand its presence in stablecoin-enabled international payment solutions and card processing infrastructure throughout Asian markets.

Collectively, Payward’s commitment across these three strategic transactions exceeds $2.6 billion.

Notwithstanding these substantial investments, plans for a Kraken initial public offering remain active. In May, Sethi disclosed that the organization has reached “about 80% ready” status for a potential market debut by 2027.

Kraken has also recently formed a strategic alliance with MoneyGram as component of its wider expansion into payment services.

The OCC application has entered the review process. The regulatory authority has not disclosed an expected timeline for rendering a determination.