ICBA Raises Concerns Over Kraken Pursuit of National Trust Charter

Washington, D.C. (May 11, 2026) — The Independent Community Bankers of America® today expressed strong concern after crypto exchange parent company Payward Inc., operator of Kraken, applied for a national trust bank charter from the Office of the Comptroller of the Currency (OCC). The application follows Kraken’s previously granted access for a Federal Reserve master account and ongoing efforts to create payment stablecoin frameworks that could further expand crypto firms’ direct access to the federal banking system.

“Kraken’s application is symptomatic of a growing convergence of crypto firms seeking greater access to the federal banking system through payment stablecoins, master account access, and national trust charters without comparable regulation as banks,” ICBA President and CEO Rebeca Romero Rainey said. “Considered individually, each proposal raises serious policy questions. Together, they raise interconnected risks, weaken long-standing guardrails, and create new channels for instability and consumer harm. The convergence of payment stablecoins, master account access, and national trust charters also raises serious concerns about the significant impacts to lending if community banks lose deposits. Policymakers should exercise caution to protect financial stability and safeguard consumers using a holistic approach before granting crypto firms additional pathways into the banking system without being regulated like banks.”

ICBA recently outlined these concerns in its issue brief, “Stablecoins, Master Accounts and National Trust Charters: Community Bankers Urge a Pause on Polices for Unaccountable Entities,” which warns policymakers about the cumulative impact of advancing multiple crypto-related policy initiatives simultaneously.

As ICBA detailed in a blog post earlier this year, the trust company role in providing for the safekeeping of customers’ assets has generated interest in the OCC’s national bank trust charter from nonbank fintech companies — risky institutions looking to siphon insured deposits into their uninsured deposit-like accounts with few protections for consumers. The OCC’s policy shift under Interpretive Letter #1176 enables these nonbanks to receive a traditional trust charter while engaging in activities the charter was never intended to permit, raising questions about the applicants’ fiduciary activities and the significant departure from existing OCC precedent that these applications represent.

ICBA urges the OCC to pause consideration of this application, rescind Interpretive Letter #1176, and undertake a formal rulemaking to clarify the scope of this charter and ensure alignment with congressional intent to support responsible innovation and a level playing field across the financial services sector.