Kraken Parent Payward Applying for OCC National Trust Bank Charter

Payward, parent company of crypto exchange Kraken, he said Friday that it submitted an application form to the Office of the Comptroller of the Currency for a national company charter.

The proposed Payward National Trust will provide digital asset management services to clients who require a government-certified custodian. Payward Co-CEO Arjun Sethi placed the deposit as part of the banking strategy.

“Our long-held belief has been that the right way to advance the digital economy is through strong, transparent regulation,” Sethi said in a company post. “The National Trust provides what trusted organizations need and provides the foundation to build the next generation.”

Sethi described the OCC’s role as fulfilling Payward’s Wyoming Special Purpose Depository Institution. “Kraken Financial and what we are building with the OCC are complementary banking solutions powered by Payward that aim to improve the digital financial system,” he said.

Payward’s request comes as government regulators show willingness to lend to new banks. Coinbase official approval in April, later approvals for Circle, Ripple, BitGo, and Paxos Trust Company and Fidelity Digital Assets last December.

“New regulations in the federal banking sector are good for consumers, the banking industry and the economy,” Comptroller of the Currency Jonathan V. Gould said in December. “They provide access to new products, services and sources of credit for consumers, and ensure a strong, competitive and diverse banking system.”

Kraken this week agreed Find stablecoin firm Reap Technologies this week in a contract of $ 600 million, following last month $550 million to get of derivatives exchange Bitnomial. The company was released last November for the IPO still to come later a total of $800 million at a cost of $ 20 billion.