Payward, the parent company of cryptocurrency exchange Kraken — one of the largest digital asset trading platforms in the world — is exploring a path to becoming a full bank, according to co-CEO Dave Ripley.

In an interview with The Block, Ripley said the firm plans to expand payments, lending, yield, and asset custody services beyond the United States. At the same time, Payward is looking to transform its existing infrastructure into a suite of offerings that banks, brokerages, and fintech companies can integrate directly into their own applications — repositioning the company's technology as a set of building blocks for the wider financial industry.

Strategic Expansion and an Infrastructure Shift

Ripley said Payward is building a wealth management business and shifting its existing infrastructure into a modular platform. The move is intended to allow third-party financial institutions to offer crypto-related services to their own customers without having to develop the underlying technology themselves.

The company's goal is to evolve from a pure-play exchange into a broader financial services provider, in a trajectory similar to the way traditional banks have expanded their offerings over time. Taken together, the plans would extend Payward's footprint across four core service lines — payments, lending, yield, and asset custody — while adding a wealth management arm and an infrastructure offering aimed at other financial institutions.

The focus on markets outside the United States is notable, given the regulatory uncertainty that has shaped crypto banking efforts in that country. By targeting international jurisdictions, Payward may be seeking a more favorable regulatory environment while still positioning itself for future U.S. opportunities if the landscape shifts.

Why a Bank Charter Matters

Payward's move reflects a broader trend among cryptocurrency firms to seek bank charters or partnerships with traditional financial institutions. To date, that trend has mostly produced limited-purpose licenses: Anchorage Digital became the first crypto firm to receive a national trust charter from the U.S. Office of the Comptroller of the Currency (OCC) in 2021, Paxos followed in 2023, and Circle opened First Digital Dollar N.A. under an OCC charter in 2025 — charters that cover custody and fiduciary services rather than full deposit-taking and lending. Kraken already holds a toehold in banking through Kraken Bank, chartered in 2020 under Wyoming's Special Purpose Depository Institution framework, a state-level license that permits custody of digital and fiat assets but provides no federal deposit insurance and fewer powers than a national bank.

A bank charter would allow Kraken to offer federally insured deposits, access to payment rails, and other services that are currently unavailable to most crypto exchanges. Direct access to the payments system is not guaranteed by a charter alone: in 2023 the Federal Reserve denied Wyoming-chartered Custodia Bank's application for a master account — the account banks use to settle directly with the Fed — a decision a federal judge upheld in 2024.

That capability could significantly increase the utility of cryptocurrencies for everyday financial activities — such as paying bills or receiving direct deposits — and could help narrow the gap between digital assets and mainstream finance.

For customers, the potential benefits include more integrated financial services, better interest rates on deposits, and a more seamless bridge between traditional and digital assets. The path to full bank status, however, is complex: it requires navigating stringent regulatory requirements, including capital reserves, risk management, and compliance with anti-money laundering (AML) laws.

Implications for Kraken Users and the Wider Market

If the transition succeeds, Payward's move could set a precedent for other crypto exchanges seeking to expand their service offerings. It may also intensify competition in the digital asset custody and wealth management space, which could ultimately translate into better services and lower fees for consumers. For Kraken's existing users, success would mean a wider range of financial products delivered through a single, more integrated platform.

A bank-like structure could also appeal to institutional investors who have so far been hesitant to engage with crypto because of the lack of regulated, bank-like infrastructure in the sector.

The timeline for these developments, however, remains unclear. Ripley did not specify a target date for obtaining a bank charter or for launching the new services. Regulatory approval processes can take years, and the company may need to adjust its plans based on evolving legal frameworks in various jurisdictions. Among the open questions that will shape the outcome: which jurisdictions Payward targets first, whether it pursues a full national charter or licenses abroad, and how the OCC and the Federal Reserve treat payments-system access for crypto-chartered institutions.

From Exchange to Bank

Payward's exploration of full bank status represents a significant step in the maturation of the cryptocurrency industry. By building a comprehensive financial services platform, the company aims to bridge the gap between traditional banking and digital assets.

Challenges remain — particularly in the regulatory arena — but the potential rewards for both the company and its users are substantial. As the situation develops, stakeholders will be watching closely to see how Payward navigates the complex path from exchange to bank.

Sources: CryptoNewsNet | BitcoinWorld