Kraken's Parent Company Applies for Federally Regulated Crypto Custody Services

Payward, the parent company of cryptocurrency exchange Kraken, has taken a significant step towards expanding its services by applying for a national trust company charter with the Office of the Comptroller of the Currency (OCC). The new entity, if approved, would provide federally regulated custody and fiduciary services for digital assets, further solidifying Kraken's position in the market.

The move follows Payward's existing Wyoming Special Purpose Depository Institution (SPDI) charter through Kraken Financial, which was established in 2020. This new application aims to create a separate entity called Payward National Trust Company (PNTC), which would use Payward's existing compliance and risk management systems.

The OCC has already approved similar applications from other companies, including Coinbase, Ripple Labs, BitGo, Circle, Fidelity Digital Assets, and Paxos. If successful, PNTC would join this group of federally regulated entities providing custody services for digital assets.