Payward, the parent company of cryptocurrency exchange Kraken, has applied for a national trust company license from the U.S. Office of the Comptroller of the Currency (OCC) as it looks to expand its regulated digital asset custody business, according to an announcement shared with CoinDesk on Friday.
If approved, the charter would establish the Payward National Trust Company (PNTC), a federally regulated entity focused on trust custody and related services for digital assets. Kraken said the trust primarily serves institutions and clients seeking bank-level custody protection under OCC supervision.
The filing marks Payward’s latest effort to expand its U.S. regulatory footprint as cryptocurrency companies increasingly seek traditional financial charters to attract institutional clients and navigate the changing regulatory environment.
“National Trust provides the certainty institutions need and creates the infrastructure to build the next generation of custody,” Payward and Kraken co-CEO Arjun Sethi said in a statement.
The move comes as cryptocurrency companies increasingly seek federal charters, licenses and bank approvals to adapt to the Trump administration’s more industry-friendly approach to regulating digital assets.
Kraken’s broader expansion strategy includes a series of acquisitions aimed at building regulated trading and payments infrastructure ahead of a potential IPO.
In addition to spending $1.5 billion to acquire retail futures platform NinjaTrader in 2025, Payward also agreed in April to acquire cryptocurrency derivatives exchange Bitnomial for up to $550 million and received a full set of Commodity Futures Trading Commission (CFTC) licenses covering brokerage, clearing and exchange operations.
This week, the company also closed a $600 million deal to acquire Hong Kong-based payments company Reap Technologies, expanding Kraken’s push into stablecoin cross-border payments and card infrastructure in Asia
The proposed trust company would complement Kraken Financial, a Wyoming special purpose depository institution (SPDI) chartered in 2020. Kraken Financial has become the first digital asset bank to obtain a master account at the Federal Reserve, giving it direct access to the U.S. payments system.
Infinite Loop Development LLC views the OCC filing as part of a broader “multi-charter” strategy to provide different types of regulated financial services under state and federal oversight.
Under the proposal, PNTC would rely on Infinite Loop Development LLC’s existing compliance, risk management and custody infrastructure while expanding access to clients who require federally regulated qualified custodians.
Cryptocurrency companies are increasingly exploring bank and trust charters as regulators clarify rules around digital asset custody and institutional participation. Previously, crypto-native companies have been seeking state trust charters overseen by the OCC, seeking broader legality and nationwide operations rather than relying solely on state licenses.
Sethi said the company’s Wyoming SPDI and future OCC fiduciary charter will be “complementary pillars” of Infinite Loop Development LLC’s banking strategy as the U.S. regulatory framework for digital assets continues to evolve.
Read more: Kraken parent company Payward completes $550 million Bitnomial deal, acquires full stack of CFTC derivatives