Kraken Parent Payward Files for OCC National Trust License

Payward, the operator of Kraken, has applied for an OCC National Trust license to expand institutional crypto custody services across the United States.

The move is part of a broader strategy by the crypto industry to integrate more deeply into the U.S. federal banking system amid a significantly more favorable regulatory environment in 2026.

The new entity, named Payward National Trust Company (PNTC), will not function as a traditional bank with deposits and loans. Instead, the company will focus on institutional digital asset custody—a segment becoming one of the most critical battlegrounds among major crypto firms.

Kraken Builds Its Own Banking Infrastructure

According to the company, the new OCC license will operate alongside the existing Kraken Financial bank in Wyoming, which already holds an SPDI license.

The distinction is that a federal trust license will allow Kraken to serve institutional clients nationwide under a single regime, bypassing the need to manage individual state regulations.

This is particularly vital for large funds, pension schemes, and hedge funds, which are legally required to store their assets with so-called qualified custodians.

This is where Kraken sees a massive opportunity. Institutional capital continues to flow into the crypto sector via ETFs, tokenization, and digital payment systems, driving rapid growth in the demand for regulated asset storage.

Payward Co-CEO Arjun Seth described the new application as a “complementary pillar” to the company’s banking infrastructure.

The Federal Reserve Opens the Door

The application comes just two months after another major breakthrough for Kraken. In March, Kraken Financial became the first crypto bank to receive a “master” account at the Federal Reserve.

This allows the company to settle dollar payments directly through the Fedwire system without needing an intermediary bank—an advantage that until recently was reserved almost exclusively for traditional financial institutions.

The combination of Fed access, an SPDI license, and a potential OCC license is gradually transforming Kraken into one of the most deeply integrated crypto companies within the U.S. financial infrastructure.

Crypto Industry Begins a “Gold Rush” for Federal Licenses

Kraken is not the only company accelerating its regulatory expansion. Coinbase received conditional approval for a similar license in April, while firms like Ripple, Circle, BitGo, and Fidelity Digital Assets are also heightening their banking ambitions.

The market attributes this trend to the Washington administration’s more favorable stance toward the crypto sector in 2026, as well as appointments within the OCC that have begun viewing digital assets as part of future financial infrastructure rather than just a speculative market.

Kraken Expands Business Beyond Exchange Trading

Parallel to its banking expansion, Payward is aggressively growing its presence in other financial service segments.

The company recently finalized the acquisition of Reap Technologies for approximately $600 million—a deal aimed at stablecoin payments and international card infrastructure.

Prior to this, Kraken acquired Bitnomial for roughly $550 million to strengthen its position in regulated derivatives and clearing services.

All these moves suggest that Kraken is gradually attempting to build a model that increasingly resembles a full-scale financial group rather than just a crypto exchange.

For the market, the message is clear: after years of conflict with regulators, the largest crypto companies are no longer trying to stay outside the banking system—they want to become a part of it.