Payward’s Application for Federal Regulation
Payward, the parent company of Kraken, has formally submitted an application to the Office of the Comptroller of the Currency (OCC) seeking to establish a federally regulated institution known as Payward National Trust Company. This significant announcement was made on May 8, 2026, during a statement from Arjun Sethi, co-CEO of Payward.
Purpose and Function of Payward National Trust Company
If granted approval, Payward National Trust Company would serve as a federally regulated qualified custodian, offering bank-level digital asset custody specifically tailored for institutional clients. Unlike traditional banks, this new entity would not engage in typical banking operations like accepting deposits or extending loans.
Sethi emphasized the importance of this initiative saying, “A national trust company provides the certainty institutions require and establishes the infrastructure to build the next generation of custody. This is not about being first; it is about getting the framework right.”
Complementing Existing Licenses
The application to the OCC is intended to complement Kraken’s existing license as a Wyoming Special Purpose Depository Institution, which Sethi referred to as a “complementary pillar” of their regulated banking approach. It’s noteworthy that Kraken Financial, which operates under this Wyoming charter, became the first cryptocurrency-focused company to secure a master account with the Federal Reserve in March 2026, allowing direct access to the Fed’s payment systems.
OCC’s History with Cryptocurrency Companies
The OCC has a history of issuing conditional approvals to cryptocurrency companies, including Ripple, Circle, Paxos, BitGo, and Fidelity Digital Assets, which were granted conditional national trust bank charters in December 2025. Additionally, Crypto.com received similar conditional approbation in February of the following year.
Payward’s Expansion and Regulatory Architecture
Payward has been aggressive in expanding its regulated operations within the U.S. Its acquisition of Bitnomial for as much as $550 million enabled it to integrate a comprehensive CFTC derivatives stack, while its $1.5 billion deal for NinjaTrader in 2025 facilitated access to retail futures. Once approved, the Payward charter would complete their regulatory architecture, encompassing trading, clearing, and safeguarding of digital assets.
OCC Approval Process
It should be noted that the OCC’s approval process is characterized by its meticulous and sequential nature. Currently, Anchorage Digital holds the distinction of being the only fully chartered crypto-native company, while other firms are still awaiting their final approvals.
