Kraken Applies for OCC Federal Bank Charter in 2026

Payward, the parent company of crypto exchange Kraken, filed an application with the U.S. Office of the Comptroller of the Currency (OCC) on May 8, 2026, to establish Payward National Trust Company (PNTC), a federally chartered national trust company focused on digital asset custody.

The charter would position PNTC as a federally regulated qualified custodian under U.S. securities and banking rules, targeting institutional clients such as pension funds, endowments, ETF sponsors, hedge funds, and corporate treasuries that are legally required to hold client assets with qualified custodians.

What Payward Is Applying For

PNTC would operate under an OCC national trust charter, providing fiduciary custody and related services for digital assets. Unlike a full commercial bank, a national trust company:

• Does not take deposits
• Does not engage in traditional lending
• Focuses on fiduciary and custodial activities

This narrower scope is well‑suited to institutional digital‑asset custody, where the primary need is secure, regulated safekeeping and settlement rather than retail banking services.

Co‑CEO Arjun Sethi emphasized the regulatory focus of the move: “Our long-held belief has always been that the right path forward for digital assets runs through robust, transparent regulation. This is not about being first; it is about getting the framework right.”

Building a Multi‑Charter Federal Stack

The OCC application is part of a broader strategy in which Payward is assembling a multi‑charter federal banking stack around digital assets:

• Kraken Financial (Wyoming SPDI) – A special purpose depository institution that has already secured a Federal Reserve master account, giving Payward direct access to U.S. payments rails and dollar settlement.
• Payward National Trust Company (proposed OCC national trust) – Would provide federally regulated digital‑asset custody and fiduciary services for institutions.
• Bitnomial (CFTC‑regulated derivatives exchange) – Acquired in April 2026 for up to $550 million, giving Payward exchange, clearing, and brokerage capabilities under CFTC oversight.

Sethi describes Kraken Financial and PNTC as “complementary pillars” of Payward’s regulated banking strategy. If PNTC is approved, Payward would be one of the first pure‑crypto firms to combine:

1. Fed master account access (payments and settlement)
2. OCC‑regulated trust custody (qualified custodian status)
3. CFTC‑regulated derivatives infrastructure (Bitnomial)

This stack would allow Payward to offer institutional clients:

• Federally regulated custody via PNTC
• Direct dollar settlement via Kraken Financial
• Cleared derivatives trading and hedging via Bitnomial

The Broader Wave of Crypto Bank Charters

Payward’s filing comes amid a broader wave of crypto‑focused bank charters and federal approvals, accelerated by a more favorable policy stance toward digital assets since late 2025.

Key developments include:

• Coinbase – Received conditional OCC approval in April 2026, becoming the first major U.S. crypto exchange with such a charter.
• Circle, Ripple, BitGo, Paxos Trust Company, Fidelity Digital Assets – Secured various federal or state banking approvals in December 2025, expanding the roster of regulated crypto custodians and payment institutions.
• Kraken Financial – Obtained a Federal Reserve master account, a milestone that was once viewed as unlikely for a crypto‑native institution.

OCC Comptroller Jonathan V. Gould has publicly welcomed new entrants: “New entrants into the federal banking sector are good for consumers, the banking industry and the economy.”

The regulatory backdrop shifted further in March 2026, when the SEC and CFTC issued a joint interpretation concluding that most digital assets are not securities. This clarification:

• Reduces the scope of SEC securities‑custody obligations for many tokens
• Increases the value of OCC trust charters, since trust companies can hold a broad range of crypto assets without triggering full securities‑custody treatment

Payward’s Acquisition‑Fueled Expansion

The OCC filing coincides with one of the most aggressive expansion phases in Kraken’s history. In just two months, Payward has committed over $1.15 billion to acquisitions:

• Reap Technologies – $600 million (May 2026)
• Bitnomial – up to $550 million (April 2026)

Bitnomial’s CFTC licenses complement the OCC trust strategy by covering digital assets that fall outside SEC jurisdiction. Together, CFTC derivatives authority and OCC trust authority would allow Payward to:

• Custody a wide range of crypto assets for institutions
• Offer hedging and derivatives products around those assets
• Integrate custody, trading, and settlement within a single regulated group

Meanwhile, Payward is preparing for public markets. It has raised $800 million at a $20 billion valuation and has an IPO filing pending. A dense layer of federal regulatory approvals — OCC trust, Fed master account, CFTC licenses, and a clean enforcement record — is central to its pitch to public‑market investors.

Why Institutional Clients Are Watching

Institutional adoption of digital assets has long been constrained by the lack of federally regulated qualified custodians at scale. While incumbents like BNY Mellon and Fidelity have launched crypto custody offerings, their platforms remain relatively limited, and other large banks such as State Street and JPMorgan have moved more cautiously.

A Payward‑operated OCC trust company would enter this market as a crypto‑native custodian with:

• A decade of operational experience in key management, cold storage, and blockchain settlement
• A federal regulatory wrapper that satisfies institutional compliance and risk committees

Potential clients include:

• Hedge funds with significant crypto exposure
• ETF sponsors seeking primary or backup custody providers
• Corporate treasuries holding Bitcoin or other digital assets
• Registered investment advisers needing qualified custodians under SEC rules

The rapid growth of U.S. spot Bitcoin ETFs underscores this demand. Through early May 2026, U.S. spot Bitcoin ETFs recorded nine consecutive days of inflows totaling $2.7 billion, with BlackRock’s IBIT surpassing 810,000 BTC in holdings. Much of that custody currently flows through Coinbase Custody. If PNTC secures its charter, it could emerge as a competitive alternative for ETF and asset‑management mandates.

What This Means for Investors

For retail Kraken users, little changes immediately. PNTC is designed as a B2B institutional platform, separate from the consumer exchange. However, the strategic implications are significant:

• Kraken is evolving from a trading venue into core financial infrastructure for digital assets.
• A successful OCC charter would validate Payward’s regulation‑first strategy and could support its upcoming IPO narrative.

Key watch points:

1. OCC Conditional Approval
2. Institutional AUM Growth
   • ETF custody mandates
   • Hedge fund and asset‑manager accounts
   • Corporate treasury custody
3. Regulatory Template for the Industry

In effect, Payward is building what looks increasingly like a federally chartered bank for digital assets, with specialized infrastructure for custody, payments, and derivatives. For the broader crypto industry, this trajectory is less a retreat into traditional finance than a sign that full federal integration is becoming the endgame for large, systemically important crypto platforms.