Kraken’s push for a federal bank license to handle crypto safely

The company behind Kraken wants to become a full-fledged federal bank just for cryptocurrency. They’ve asked regulators for a special trust charter, which would let them offer official custody services to big investors and businesses. If approved, this new Payward National Trust Company could keep digital coins secure under federal rules, not just state ones. The plan fits into Kraken’s long game of building a regulated crypto banking system before it eventually goes public. Why does this matter? Big money players in crypto often avoid risky storage solutions. A federal license means major institutions can trust Kraken to guard their digital assets the same way traditional banks protect cash. The company argues that clear federal rules attract bigger clients who need safety and stability. But critics wonder if mixing crypto with old-school banking might dilute its original promises—like decentralization and freedom from traditional finance.

Kraken isn’t starting from scratch. They already run Kraken Financial, a digital bank in Wyoming with direct links to the U. S. payment system. Adding an OCC trust charter would give them two layers of government oversight. It’s like having a backup plan in case one regulator changes its mind. Other crypto firms are doing the same, racing to get licenses before rules tighten. Their plan also includes buying other companies. Kraken has spent billions in recent years on firms that handle trading, payments, and even crypto futures. One deal brings tools for Asian markets, another adds futures trading for regular traders. Each purchase helps build a wall around their new banking dreams. Not everyone buys the hype. Some experts question whether crypto really needs this much government approval to succeed. After all, the whole idea started as an alternative to banks. Kraken’s leaders see it differently—they call their strategy “multi-charter, ” meaning they want different licenses for different services. Big investors seem to agree; they prefer dealing with firms that follow clear rules.

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