Rain Applies for Federal Charter to Control Stablecoin Payment Stack

Rain, a stablecoin payments infrastructure provider, has filed an application with the U.S. Office of the Comptroller of the Currency (OCC) to establish a national trust bank. The proposed Rain National Trust Bank (RNTB) would issue dollar-backed stablecoins, manage reserves, and provide custody services, consolidating key aspects of the stablecoin payment stack under federal supervision. The application, submitted on October 5, comes as Rain seeks to control the entire process from token issuance to settlement on card networks like Visa and Mastercard.

Brandon Soto, former CFO of Square Financial Services, is named as the planned president and CEO of RNTB. The filing follows a lawsuit by the Independent Community Bankers of America (ICBA) challenging the OCC's authority to grant trust charters to crypto firms. Modern Treasury filed a similar application the same day, while other companies like Circle, Coinbase, and Kraken are also pursuing this path.

The proposed bank would not accept deposits, open consumer accounts, or make loans, but it would manage stablecoin issuance and reserves. Rain's CEO Farooq Malik emphasized the need for a federally regulated fiduciary to hold assets behind stablecoin programs. Approval for such charters remains years away, pending litigation outcomes and pending GENIUS Act regulations.

Rain's move is part of a broader trend in the crypto industry, where companies are seeking to control the entire stablecoin payment stack. Circle, for example, has already received OCC approval for its trust bank, while Coinbase and Kraken are at various stages of the process. The ICBA lawsuit argues that the OCC's framework allows risky crypto activities to enter the banking system with light regulation.