Rain Applies for National Trust Bank Charter to Custody Crypto and Issue Stablecoins

Rain, a company specializing in stablecoin payments infrastructure, has taken a significant step by filing an application with the Office of the Comptroller of the Currency (OCC) to create Rain National Trust Bank. Headquartered in New York, the proposed bank aims to custody digital assets, manage stablecoin reserves, and issue dollar-backed stablecoins under the GENIUS Act. This move comes just days after the Independent Community Bankers of America sued the OCC over its crypto trust charter rules, highlighting the contentious regulatory landscape.

The new bank would operate under OCC supervision and offer fiduciary custody of digital assets and US dollars for institutional clients. It would also manage reserves for approved stablecoin issuers and issue and redeem USD-backed stablecoins. Rain emphasized that the bank would not accept deposits, offer consumer checking and savings accounts, or make commercial loans, meaning it would not carry FDIC deposit insurance.

Brandon Soto, former CFO at Square Financial Services, has been named as the proposed president and CEO of Rain National Trust Bank. His appointment is pending OCC review. Rain CEO Farooq Malik stated that clients using Rain’s infrastructure seek a fiduciary that reports to a federal regulator, underscoring the demand for regulated custody services in the crypto space.

The application process includes a public comment period, with no specified timeline for a decision. Rain assured that its existing services, including card, wallet, and money transfer operations, will continue as usual during the review. The company views the trust bank project as a multi-year effort that will only launch once all approvals are secured.