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Industry

Kraken Parent Moves to Expand Regulated Crypto Custody in U.S.

The move is part of the company’s push to strengthen its U.S. regulatory position and expand into traditional finance.

Written By:
Iyiola Adrian

Reviewed By:
Shubham Soni

Last updated: 46 minutes ago
Published 53 minutes ago
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Last updated: 46 minutes ago
Published 53 minutes ago
Kraken Parent Moves to Expand Regulated Crypto Custody in U.S.

Key Highlights

  • Payward, Kraken’s parent company, applied for a U.S. national trust charter to create a regulated company for safely storing crypto assets.
  • Kraken is expanding fast through big deals like buying NinjaTrader, Bitnomial, and Reap Technologies to build a global financial system.
  • The proposed trust structure would work alongside Kraken’s Wyoming banking license under a multi-charter regulatory strategy.

Payward, the parent company of crypto exchange Kraken, has reportedly applied for a national trust company charter in the United States with the Office of the Comptroller of the Currency (OCC). 

According to the official release, if approved, the application would allow Payward to establish a new entity called Payward National Trust Company (PNTC). The proposed firm would operate under federal regulation and focus primarily on safeguarding digital assets such as cryptocurrencies on behalf of clients.

The custody service is expected to target institutional clients, including investment funds, corporations, and large investors seeking regulated storage solutions under government oversight.

Expansion beyond crypto trading

The application also reflects Payward’s broader strategy to expand beyond spot crypto trading and build a wider financial services platform.

In 2025, Kraken acquired NinjaTrader, a platform used for trading futures, in a deal worth about $1.5 billion. The company also recently agreed to buy Bitnomial, a crypto derivatives exchange, for up to $550 million. The deal helps Kraken gain full access to licenses from the U.S. Commodity Futures Trading Commission (CFTC), which allows it to run more advanced trading services like brokerage and clearing.

Earlier this week, Payward signed a $600 million deal to buy Reap Technologies, a Hong Kong-based payments firm, to grow its stablecoin-based cross-border payment and card systems in Asia. 

These moves are part of Kraken’s long-term plan to prepare for a possible initial public offering (IPO) while building a regulated global infrastructure.

Building a broader custody system

The new trust proposal would work alongside Kraken Financial, which already operates under a Wyoming Special Purpose Depository Institution (SPDI) charter obtained in 2020. The entity became the first digital asset-focused bank to gain access to a Federal Reserve master account, allowing direct participation in the U.S. payments system.

The OCC trust structure and Wyoming SPDI are expected to function together as part of Payward’s broader “multi-charter” strategy, which combines state and federal regulatory frameworks to support different financial services.

Other crypto firms seeking federal approval

The application also places Kraken among those that are now applying for bank-like licenses in the U.S. Earlier this year, Coinbase received conditional approval to establish a national trust firm in the country. 

Other companies, including Crypto.com and Circle, have also received federal approvals to access U.S. payment systems and national banking services. They are doing this because rules around digital assets are becoming clearer. 

These licenses also help companies attract bigger investors and operate more freely across the country without needing approval from each state one by one.

Also Read: Kraken Strikes Deal with MoneyGram for Worldwide Crypto Cash Withdrawals

Disclaimer: The information researched and reported by The Crypto Times is for informational purposes only and is not a substitute for professional financial advice. Investing in crypto assets involves significant risk due to market volatility. Always Do Your Own Research (DYOR) and consult with a qualified Financial Advisor before making any investment decisions.

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Iyiola - Crypto Journalist at The Crypto Times
By Iyiola Adrian
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Iyiola is an experienced crypto writer specializing in simplifying complex blockchain and cryptocurrency topics for a broad audience. With expertise in ICOs, DeFi, NFTs, and regulatory updates, he offers valuable insights to help readers make informed decisions.
Shubham Soni Crypto Content Editor
By Shubham Soni
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Shubham Soni is a veteran content editor and journalist with over three years of experience leading digital editorial strategies across the U.S. and Indian markets. With a background in high-pressure newsrooms, Shubham specializes in the rigorous fact-checking, structural editing, and narrative development of complex news and explainers. Throughout his career at prominent digital publications like Sportskeeda and Opoyi, he has managed fast-paced desks covering global politics, sports, and entertainment. His expertise lies in transforming technical information into accessible, high-impact reporting while maintaining strict adherence to editorial ethics and accuracy. At The Crypto Times, Shubham oversees the editorial workflow, mentoring writers to ensure all cryptocurrency research and analysis meets the highest standards of clarity and journalistic integrity.

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