Payward’s Application for National Trust Company Charter
Payward, the organization behind the popular cryptocurrency exchange Kraken, announced on Friday that it has submitted an application for a national trust company charter to the Office of the Comptroller of the Currency (OCC). This proposed entity, dubbed the Payward National Trust Company, aims to deliver custody services for digital assets to institutional clients who need a federally regulated qualified custodian.
Strategic Vision for Digital Asset Custody
Co-CEO Arjun Sethi emphasized that this application reflects a broader banking strategy intended to build a foundation for the future of digital asset custody. In a blog post released by the company, he stated:
“We firmly believe that the progress of digital assets depends on strong, transparent regulations. The establishment of a national trust company assures institutional players of the security they demand while fostering the necessary infrastructure for next-generation custody solutions.”
Sethi further clarified that this filing supports Payward’s current operations, specifically pointing to its Wyoming-based Special Purpose Depository Institution. He explained:
“What we are establishing with the OCC and Kraken Financial forms complementary elements of our overarching regulated banking approach, promoting a more efficient and accessible digital finance landscape.”
Regulatory Landscape and Industry Developments
The timing of Payward’s application aligns with a shifting regulatory atmosphere, as federal authorities appear more open to granting new banking charters. Earlier in the year, Coinbase received conditional approval from the OCC, joining others like Circle, Ripple, BitGo, and Paxos Trust Company who received similar clearance in December.
Comptroller of the Currency Jonathan V. Gould previously remarked on the benefits of welcoming new entities into the federal banking fold, highlighting that such developments enhance consumer options, diversify the banking ecosystem, and stimulate economic growth.
Recent Acquisitions and Future Plans
In related news, Kraken has recently expanded its operations through significant acquisitions, including a $600 million deal for stablecoin provider Reap Technologies and a $550 million purchase of the derivatives exchange Bitnomial last month. Additionally, Kraken is preparing for an initial public offering (IPO) after successfully raising $800 million at a valuation of $20 billion last November.
