A national trust company charter would allow Payward to set up a federally regulated custody business under OCC oversight. The company said the purpose is to broaden access for institutional clients that require a federally regulated qualified custodian.
What It Means For KrakenThe company also stated that it plans to build on Payward’s existing infrastructure, along with its risk management, compliance programs, and regulated affiliates, positioning PNTC to deliver custody services in a secure and compliant manner.
Arjun Sethi, Co-CEO of Payward and Kraken, said the company’s long-standing view is that digital assets need robust and transparent regulation to grow responsibly.
Sethi emphasized that the effort is not about “being first,” but about getting the framework right so markets can scale with clarity, interoperability, and long-term expectations from clients as the technology matures.
Kraken’s co-CEO also linked the charter effort to Payward’s broader banking strategy. He described Kraken Financial and the work with the OCC as complementary parts of an initiative aimed at advancing a more “digitally native” financial system that is efficient and accessible.
Critics Question The OCC’s Crypto ApproachAs previously reported by Bitcoinist, the OCC has conditionally approved national trust bank charters for six crypto firms: Circle, Ripple, BitGo, Fidelity Digital Assets, and Paxos.
Since last year, banking lobbyist groups have pushed back against the OCC’s decision to approve crypto-related charters, arguing that the OCC is stretching the definition and historical purpose of the national trust bank charter.
She also argued that the new framework could allow stablecoin operators to access the federal banking system without the same level of capital and regulatory requirements that traditional banks must meet.
Featured image created with OpenArt, chart from TradingView.com
