Digital Currency Firm Seeks National Banking License to Expand Operations Under Federal Oversight

In a significant development, Payward, the parent company of Kraken, has submitted an application to the Office of the Comptroller of the Currency (OCC) on May 8, 2026, seeking to establish a federally regulated national trust company, dubbed Payward National Trust Company (PNTC). This entity is designed to provide top-tier custody services for digital assets, catering specifically to institutional clients and individuals requiring compliant solutions.

At its core, PNTC aims to deliver robust custody services, eschewing traditional retail banking offerings such as checking accounts. According to Payward Co-CEO Arjun Sethi, the creation of a national trust company is a crucial stepping stone, as it will provide institutional clients with the certainty they need while laying the groundwork for advanced custody solutions.

This move builds upon the momentum generated by Kraken, which previously secured a Wyoming Special Purpose Depository Institution (SPDI) charter and subsequently obtained a Federal Reserve master account in March 2026. The master account grants Kraken Financial direct access to the Federal Reserve's payment systems, eliminating the need for intermediary banks.

Payward is not alone in pursuing a federal charter, as Coinbase received conditional approval from the OCC for a national trust charter on April 2, 2026, while Ripple is also making similar efforts. Obtaining an OCC charter for a national trust company would subject PNTC to federal supervision, requiring it to adhere to the same capital requirements, anti-money laundering obligations, and consumer protection standards as nationally chartered trust banks.

A federally chartered trust company would simplify the complex compliance landscape for institutions operating across multiple states and jurisdictions, where custody arrangements currently vary. This development would have significant implications for investors, as the OCC's evaluation timeline for charter applications can be lengthy and unpredictable.

If Payward, Coinbase, and Ripple ultimately secure federal charters, they will be competing for the same pool of institutional clients. In this scenario, the key differentiators will be technology, fee structures, and the breadth of supported assets, rather than regulatory status alone. While details on the evaluation timeline for Payward's OCC application are scarce, one thing is clear: the competition for institutional clients in the digital asset custody space is heating up.