Rain Applies for OCC Trust Bank Charter Amid Legal Challenges

Stablecoin payments infrastructure provider Rain has applied for a national trust bank charter with the U.S. Office of the Comptroller of the Currency (OCC). If approved, Rain National Trust Bank would offer regulated custody for digital assets and U.S. dollars, as well as stablecoin reserve management services for institutional clients. The move aligns with the GENIUS Act and positions Rain as a compliance-focused provider rather than a consumer-facing stablecoin issuer.

Rain’s proposed leadership includes Brandon Soto, former Square Financial Services CFO, as president and CEO, subject to OCC review. The application comes amid growing interest from crypto and payments firms seeking OCC trust bank charters, with Modern Treasury also applying for a similar charter.

However, the push for charters faces legal challenges. The Independent Community Bankers of America (ICBA) sued the OCC, arguing that the regulator’s framework allows non-depository trust banks to conduct high-risk crypto activities under lightly regulated charters. ICBA seeks to block further approvals relying on the OCC’s chartering rule and interpretive letter.

The lawsuit highlights tensions between crypto firms seeking regulatory clarity and community banks concerned about competition and consumer protection. The outcome of the legal battle could impact the pace of approvals for crypto-related trust bank charters, including Rain’s application.