rewardThe parent company of cryptocurrency exchange Kraken revealed on Friday that it has submitted an application to the Office of the Comptroller of the Currency (OCC) seeking approval of a National Trust Company charter.
A national trust company charter would allow Payward to establish a federally regulated custodial company under OCC oversight. The goal is to expand access to institutional clients who need a qualified, federally regulated custodian, the company said.
What does it mean for the Kraken
In its version, Payward He explained That if the application is approved, a Payward National Trust Company (PNTC) will be established. Kraken’s parent company said it expects to serve institutional and retail customers looking for regulated, trust-based hosting and digital asset-related services.
The company also stated that it plans to build on Payward’s existing infrastructure, along with its risk management and compliance programs and regulated subsidiaries, 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-term view is that digital assets need strong and transparent regulation to grow responsibly.
The executive described it National Trust Company model As the kind of certainty institutions are looking for, she said the charter would help create the infrastructure needed for “the next generation of incubation.”
Sethi stressed that the effort is not about “being first,” but about setting the right framework so markets can scale with clarity, interoperability, and long-term expectations from customers as the technology matures.
Kraken’s co-CEO also tied the leasing 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 developing a more “digital” financial system that is efficient and accessible.
He pointed to Payward’s Wyoming SPDI and The Federal Reserve’s main account As a basis for the company’s approach, he said adding a national credit company would expand what Payward can offer customers.
Critics question the OCC’s encryption approach
As Bitcoinist previously reported, the OCC has conditionally approved national trust bank charters for six cryptocurrency companies: Circle, Ripple, BitGo, Fidelity Digital Assets, and Paxos.
The last of those approvals came earlier last month, when Coinbase Received conditional approval from the OCC to establish Coinbase National Trust Company. However, OCC approvals have faced criticism.
Since last year, banking lobbyists have opposed the OCC’s decision to approve charters related to cryptocurrencies, arguing that the OCC is expanding the definition and historical purpose of the National Trust Bank charter.
Rebecca Romero Rainey, President and CEO of Independent Community Bankers of America, He said Conditional approvals can put consumers at risk and create institutions that the OCC may not be able to manage effectively.
It 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.
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