Payward Inc. the parent company of crypto exchange Kraken, applied for a national trust bank charter with the Office of the Comptroller of the Currency. Federal approval would allow Payward to operate as a regulated entity, offering digital asset custody, fiduciary services and payment processing nationwide without needing individual state-by-state licenses.
The charter provides direct access to traditional financial infrastructure as institutional demand accelerates. Spot Bitcoin ETFs approved in January and Ethereum spot ETFs approved in May have driven consistent net inflows from traditional finance firms. Bitcoin trades at $80,217, up 0.3 percent over 24 hours, reflecting sustained institutional accumulation despite market volatility.
An OCC trust charter provides direct access to federal payments systems, reducing reliance on third-party banking partners and lowering counterparty risk for large clients. Regulated trust companies can directly settle transactions through the Fedwire Funds Service, bypassing commercial banks and accelerating settlement times for high-volume traders. This infrastructure scales institutional wallet flows and reduces friction in large-scale asset transfers.
Payward faces established competition from Gemini Trust Company and Paxos Trust Company, which already operate under similar charters offering stablecoin issuance and institutional custody services. The application comes as the Crypto Fear & Greed Index registers 38, indicating cautious market sentiment but continued strategic positioning by major players for the next cycle.
