Kraken Parent Payward to Acquire Reap for $600 Million to Boost Asia Presence

Key Facts

Payward, the parent company of Kraken, disclosed on Friday that it has filed a formal application with the Office of the Comptroller of the Currency (OCC) for a National Trust Company charter. This strategic move aims to integrate a federally regulated trust company with its Federal Reserve master account, specifically targeting a regulated custody business. The filing coincides with Payward's $600 million acquisition of Hong Kong-based Reap Technologies to bolster its Asian infrastructure. This application follows established regulatory precedents set by the OCC with firms like Coinbase and Ripple. The acquisition integrates advanced card issuance and stablecoin payment capabilities into Payward's new B2B platform. By securing both a regional foothold in Asia and pursuing a federal charter in the U.S., Kraken is positioning itself as a comprehensive global financial institution under federal oversight.

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