Rain Applies for US Bank Charter Amid Crypto Industry Push

Stablecoin payments infrastructure provider Rain has taken a significant step by filing an application to establish a national trust bank headquartered in New York. The company submitted the request to the Office of the Comptroller of the Currency (OCC) on Monday, seeking approval for Rain National Trust Bank. If granted, the bank would offer fiduciary custody of digital assets and US dollars for institutional clients, manage reserves for stablecoin issuers, and issue and redeem dollar-backed stablecoins under the GENIUS Act.

Brandon Soto, former chief financial officer of Square Financial Services, will lead the proposed bank as president and CEO, pending OCC review. Farooq Malik, CEO and co-founder of Rain, emphasized the need for institutions to hold assets with a federally regulated fiduciary, highlighting the growing trend of crypto companies seeking bank charters.

Rain is not alone in this endeavor. Modern Treasury, a payments infrastructure company, also announced its application on Monday to provide digital asset custody and related fiat services. However, this push for crypto-friendly bank charters has faced opposition from community banks. The Independent Community Bankers of America (ICBA) filed a lawsuit against the OCC on Friday, alleging that the regulator overstepped its authority by allowing non-depository trust banks to engage in extensive non-fiduciary activities.

The ICBA argues that the OCC’s framework gives crypto trust banks a competitive advantage by allowing them to offer services that overlap with community banks without the same regulatory obligations. The group has asked the court to overturn the OCC’s March 2026 chartering rule and a 2021 interpretive letter, as well as prevent further charter approvals relying on them. The Crypto Council for Innovation has labeled the lawsuit as an attempt to stifle innovation.