Kraken Parent Entity Seeks Federal Charter for Crypto Custody Services

Kraken's parent entity Payward has taken another significant step in its expansion plans by submitting an application for a national trust company charter to the U.S. Office of the Comptroller of the Currency (OCC). The proposed charter, if approved, would establish a separate legal entity named Payward National Trust Company (PNTC), which would provide custody and fiduciary solutions under federal regulation.

The OCC has previously granted comparable authorizations to several major industry players, including Coinbase, Ripple Labs, BitGo, Circle, Fidelity Digital Assets, and Paxos. Payward aims to join this exclusive group of federally chartered crypto institutions.

Co-CEO Arjun Sethi emphasized that the company prioritizes establishing robust regulatory infrastructure over racing to be first to market. He stated that a national trust company provides the certainty institutions require.