Payward Inc., the parent organization of the prominent digital asset exchange Kraken, has officially submitted an application to the U.S. Office of the Comptroller of the Currency (OCC) to establish a national trust company charter. This strategic move aims to create a federally regulated entity, tentatively named the Payward National Trust Company (PNTC), which will focus exclusively on the custody of digital assets. The application marks a significant escalation in Payward’s efforts to bridge the gap between native cryptocurrency services and the traditional federal banking system, positioning the firm to compete directly with established financial institutions in the burgeoning market for institutional-grade digital asset management.
The pursuit of a national trust charter represents a pivotal shift for Payward, which has historically operated through a patchwork of state-level licenses and an innovative, albeit geographically limited, state-chartered bank in Wyoming. By seeking federal oversight from the OCC, Payward intends to bypass the fragmented regulatory requirements of individual states, gaining the ability to offer fiduciary services across the entire United States under a single, unified regulatory framework. This move is widely seen by industry analysts as a necessary step for the company to achieve its long-held ambitions of going public, as a federal charter provides the level of regulatory certainty and institutional prestige required by public market investors and large-scale corporate clients.
The Strategic Shift Toward Federal Oversight
The application for the Payward National Trust Company comes at a time of rapid expansion and aggressive capital deployment for the San Francisco-based firm. Payward has recently accelerated its acquisition strategy, spending approximately $2.7 billion on various companies within a twelve-month period. Most recently, the firm announced a $600 million deal to acquire Reap Technologies, a stablecoin-focused financial platform based in Asia. This acquisition is intended to bolster Kraken’s presence in the stablecoin and payments sector, providing the infrastructure necessary to integrate digital assets into daily commercial transactions.
The decision to seek an OCC charter is also a response to the inherent limitations of state-level banking frameworks. While Kraken Financial—the firm’s Wyoming-based Special Purpose Depository Institution (SPDI)—successfully secured a Federal Reserve master account in March 2025, it remains a state-chartered entity. Although a master account allows for direct access to the Federal Reserve’s payment systems, a state charter does not offer the same level of legal preemption as a national charter. A national trust charter would allow PNTC to operate with a "passport" across state lines, significantly reducing the legal and compliance overhead associated with multi-state operations.
A Changing Regulatory Climate in Washington
The timing of Payward’s application is intrinsically linked to a shifting political and regulatory landscape in the United States. Following a period of intense scrutiny and "regulation by enforcement" from federal agencies, the administrative posture toward digital assets has warmed considerably. The current administration has signaled a greater willingness to integrate cryptocurrency firms into the federal oversight net rather than excluding them from the traditional financial system.
This change in sentiment is reflected in the OCC’s recent activity. Between December 2025 and March 2026, the OCC either conditionally approved or moved forward with eleven different crypto-related trust charter applications. This list includes some of the most prominent names in the industry, such as Circle, Ripple, BitGo, Fidelity Digital Assets, Paxos, Bridge, Crypto.com, and Zerohash. For Payward, the successful advancement of these peers suggested that the path to a federal charter, once considered a regulatory dead end, has become a viable and strategic route for growth.
By joining this group of federally regulated digital asset firms, Payward aims to shed the "offshore" or "unregulated" stigma that has occasionally plagued the cryptocurrency exchange sector. The national trust charter would place PNTC under the direct supervision of the OCC, the same body that regulates the largest commercial banks in the United States, thereby providing a "seal of approval" that is critical for attracting pension funds, insurance companies, and other large institutional allocators.
Financial Trajectory and Valuation Volatility
Payward’s push for federal licensing is supported by a period of robust financial performance, despite broader market volatility. In 2025, the company reported adjusted revenue of $2.2 billion, representing a 33% increase over the previous year. Profitability also saw significant gains, with adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) reaching $531 million, a 26% year-over-year rise. By the end of 2025, Kraken’s platform hosted 5.7 million funded accounts and facilitated an astronomical $2 trillion in transaction volume.
However, the company’s valuation has experienced notable fluctuations. In late 2025, Payward was valued at approximately $20 billion. By April 2026, secondary market transactions—where private shares are traded between investors—implied a lower valuation of $13 billion. This 35% decline in implied value reflects a broader cooling of private equity markets and a more conservative outlook from investors regarding the long-term growth rates of crypto-native exchanges.
Despite the valuation dip, Kraken’s leadership remains focused on an eventual Initial Public Offering (IPO). The company has stated that it is approximately 80% ready for a public listing. While the IPO process is currently described as "paused," it has not been abandoned. The acquisition of a national trust charter is viewed as a "meaningful credential" that would satisfy the rigorous due diligence requirements of the Securities and Exchange Commission (SEC) and institutional underwriters during the IPO process.
Chronology of Kraken’s Banking and Regulatory Milestones
To understand the significance of the PNTC application, it is essential to trace the company’s regulatory journey over the past several years:
- September 2020: Kraken becomes the first digital asset firm to receive a bank charter in the United States via the Wyoming Special Purpose Depository Institution (SPDI) framework, establishing Kraken Financial.
- March 2025: Kraken Financial achieves a historic milestone by securing a Federal Reserve master account. This granted the firm direct access to the core U.S. payment infrastructure, allowing it to settle transactions without relying on intermediary commercial banks.
- Late 2025: Payward’s valuation peaks at $20 billion as the company reports record revenues and transaction volumes.
- December 2025 – March 2026: The OCC signals a new era of federal crypto licensing by advancing eleven trust charter applications from major industry players.
- Early 2026: Payward embarks on a massive acquisition spree, totaling $2.7 billion in 12 months, including the $600 million purchase of Reap Technologies.
- April 2026: Payward officially applies for the Payward National Trust Company (PNTC) charter with the OCC. Simultaneously, secondary market data suggests a revised valuation of $13 billion.
Analysis of Broader Industry Implications
The move by Payward to seek an OCC charter carries implications that extend far beyond the company itself. It signals the "institutionalization" of the cryptocurrency custody market. For years, custody was the primary hurdle preventing large institutional players from entering the digital asset space. If a firm like Payward can offer custody services through a federally chartered trust, it removes the legal ambiguity regarding "qualified custodianship" under the Investment Advisers Act of 1940.
Furthermore, the establishment of PNTC could create a competitive "moat" for Payward. As the regulatory bar for digital asset firms rises, only those with the capital and compliance infrastructure to maintain a federal charter will be able to service the high-end institutional market. This could lead to a consolidation of the industry, where smaller, state-regulated firms are acquired or sidelined by federally overseen giants.
The focus on custody also aligns with the evolving nature of the crypto economy. As stablecoins become a more prominent tool for global settlements—highlighted by Payward’s acquisition of Reap Technologies—the need for a regulated entity to hold the underlying reserves becomes paramount. A national trust company is an ideal vehicle for holding the cash and T-bill reserves that back stablecoins, providing transparency and security that offshore issuers cannot match.
Future Outlook: The Path to the Public Markets
As Payward awaits the OCC’s decision, the company continues to refine its internal operations to meet the standards of a public entity. The "80% ready" status for an IPO suggests that while the technical and financial audits may be nearing completion, the final 20% likely involves navigating the complex regulatory approvals and finding the optimal market window for a listing.
The success of the PNTC application would effectively serve as the final piece of the puzzle. It would transform Payward from a high-growth tech startup into a regulated financial powerhouse. For public market investors, the distinction between a "crypto exchange" and a "federally regulated national trust company" is substantial. The latter offers a level of stability, oversight, and systemic integration that justifies higher valuation multiples and long-term investor confidence.
In the interim, Payward is expected to continue its integration of Reap Technologies and other recent acquisitions, expanding its footprint in Asia and the stablecoin market. If the OCC grants the PNTC charter, it will likely trigger a new wave of institutional products from Kraken, including sophisticated custody solutions, prime brokerage services, and perhaps even its own regulated stablecoin offerings, further blurring the lines between the digital and traditional financial worlds.
