Kraken Parent Payward Seeks U.S. Bank Charter for Crypto Custody
Payward has applied for a U.S. national trust bank charter, marking a significant step in its push to become a federally regulated digital asset custodian.
Summary:
- Payward applies for OCC national trust charter to expand custody services.
- Move targets institutional investors requiring qualified custodians.
- Part of broader shift toward federal regulation in crypto banking.
The application, filed May 8, 2026, would establish the Payward National Trust Company, a new entity designed to serve institutional clients under the supervision of the Office of the Comptroller of the Currency.
Expanding Into Institutional Custody
The proposed trust company would focus on safeguarding digital assets for institutional investors, a segment that has grown rapidly as traditional finance firms increase exposure to cryptocurrencies. By securing a national trust charter, Payward aims to meet the regulatory requirements that govern how large investors store assets.
Under U.S. law, many institutions must rely on “qualified custodians” to hold client funds. A federally chartered trust bank would allow Payward to offer these services across all 50 states, avoiding the need to navigate multiple state-level regulatory frameworks.
The move builds on Kraken’s existing banking infrastructure, which includes a Wyoming-based entity operating under a Special Purpose Depository Institution charter. While that structure supports certain banking functions, the federal license would provide a higher level of regulatory recognition for custody services.
A Multi-Charter Strategy Takes Shape
Payward executives have described the application as part of a broader, multi-layered approach to financial services. The company has been assembling a network of licenses and capabilities designed to support both retail and institutional clients.
Earlier this year, Kraken’s Wyoming bank secured access to the Federal Reserve’s payment system, enabling direct settlement of U.S. dollar transactions. The addition of a national trust charter would complement that capability by focusing on asset custody and fiduciary services.
Unlike traditional commercial banks, however, the proposed entity would not accept deposits or issue loans. Its role would be limited to safeguarding assets and acting in a fiduciary capacity, aligning with regulatory frameworks for trust institutions.
Industry-Wide Shift Toward Federal Oversight
Payward’s application reflects a broader trend among digital asset firms seeking federal recognition. Companies including Coinbase and Fidelity Digital Assets have pursued similar pathways, aiming to bridge the gap between crypto markets and traditional financial systems.
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This shift comes amid a more supportive regulatory environment in 2026, which has encouraged firms to pursue licenses that were previously difficult to obtain. Federal charters offer a unified framework that can simplify operations and enhance credibility with institutional clients.
Building a Full-Service Financial Platform
The charter application follows a series of strategic acquisitions by Payward, including deals aimed at expanding payments and derivatives capabilities. These moves suggest the company is positioning itself as a comprehensive financial platform rather than a standalone exchange.
By combining custody, trading, payments, and settlement infrastructure, Payward is seeking to capture a larger share of institutional demand for digital assets. The success of this strategy will depend in part on regulatory approval, as well as the firm’s ability to integrate its expanding portfolio of services.
For now, the application underscores the growing convergence between cryptocurrency firms and traditional financial institutions, as both sectors adapt to a rapidly evolving regulatory and technological landscape.
The information presented in this article is intended for informational purposes only and should not be interpreted as financial, investment, or trading advice. Coinspress.com does not promote or advocate for any particular investment strategy, asset, or cryptocurrency project. Cryptocurrency markets are highly volatile and unpredictable – always perform your own research and seek guidance from a qualified financial professional before making any investment decisions.
Alexander Stefanov
Reporter at CoinsPress
Alex is Editor-in-Chief of Coinspress and co-founder of Millennial Media Group, with nearly a decade of experience covering financial markets - crypto first, then everything else. It started in 2016 with Bitcoin. Like most people at the time, he didn't fully understand it - so he kept digging. Blockchain, tokenomics, the projects, the cycles. That curiosity never stopped, and eventually pulled him into traditional markets too: equities, commodities, macro. Not because he left crypto behind, but because you can't properly understand one without the other. What drives him is straightforward: he wants to know why something is happening, not just that it's happening. Most market coverage stops at the headline - price up, price down, here's a chart. Alex finds that kind of reporting actively unhelpful. If you walk away from an article without understanding the mechanism behind the move, what did you actually learn? He holds a degree in Tourism from New Bulgarian University - not the most obvious path into financial markets, but markets have a way of pulling in people who are simply too curious to stay out. He has authored over 200 in-depth analyses and more than 10,000 articles across crypto and traditional finance. He still thinks every day in markets teaches him something new. That's probably why he hasn't stopped.
