On May 8, Payword, the parent company of cryptocurrency exchange Kraken, applied to the U.S. Office of the Comptroller of the Currency (OCC) to obtain a national trust company license to expand its regulated digital asset custody business.
If approved, the company would launch Payward National Trust Company (PNTC), a federally supervised entity focused on trust and custody services for digital assets, according to a statement.
According to Kraken, The purpose is primarily to serve institutions and customers It is directly regulated by the OCC and requires the same standards of protection as traditional banks. However, he explained that the move is part of a “multi-licensing” strategy aimed at providing a variety of financial services that are regulated at both the state and federal level.
Once completed, PNTC will leverage the compliance, risk management, and custody infrastructure the company has already developed, in addition to facilitating access for customers requiring federally supervised and qualified custodians.
Arjun Sethi, co-CEO of Payward and Kraken, said: National Trust Company provides legal security Institutions need and can help build the infrastructure needed for a new generation of digital storage services.
“The National Trust Company will provide the certainty that financial institutions need and establish the infrastructure needed to build the next generation of custody services. It’s not about being first, it’s about developing the right framework so the market can grow with clarity, interoperability, and a long-term vision for what customers demand as these systems mature.”
Arjun Sethi, co-executive director of Payward and Kraken, said:
This initiative is part of Payward’s regulatory expansion strategy in the United States.In a context where companies in the ecosystem seek traditional financial licenses to attract institutional clients and adapt to an evolving regulatory landscape.
The decision also coincides with a “more favorable” political environment for the digital asset industry under President Donald Trump’s administration, with several companies in the sector applying for federal licenses related to banking services.
The future trust company will complement Kraken Financial, a special purpose depository institution created in Wyoming in 2020. This corporation is First bank specializing in digital assets now has direct access to Federal Reserve payments system Through the master account, as CriptoNoticias explained.
Payward’s move to expand the federal regulatory structure also follows criticism that arose when Kraken Financial gained access to the Federal Reserve’s payment system. At the time, the U.S. Bankers Association expressed concerns about entities involved in the ecosystem accessing traditional financial infrastructure through special regulatory frameworks, and this debate continues to shape the relationship between the digital asset industry and the U.S. banking system.
(Tag Translation) Banking and Insurance
