Rain Applies for US Trust Bank Charter Amid Crypto Banking Push

Stablecoin payments infrastructure provider Rain has applied for a national trust bank charter in New York, joining a growing trend of crypto firms seeking bank charters. The company filed the application with the Office of the Comptroller of the Currency (OCC) to establish Rain National Trust Bank. If approved, 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.

Former Square Financial Services CFO Brandon Soto will lead the proposed bank as president and CEO, pending OCC review. Rain CEO Farooq Malik stated that institutional clients prefer fiduciary custody with federal oversight. Modern Treasury, another payments infrastructure company, also submitted a similar application on the same day.

However, the push for crypto trust charters faces opposition from community banks. The Independent Community Bankers of America (ICBA) sued the OCC, alleging the regulator overstepped its authority by allowing non-depository trust banks to engage in extensive non-fiduciary activities. ICBA argues that the OCC's framework gives crypto trust banks a competitive advantage by overlapping with community bank services without the same regulatory obligations.

ICBA has asked the court to overturn the OCC's March 2026 chartering rule and 2021 interpretive letter, and halt further charter approvals. The Crypto Council for Innovation defended the OCC's actions, calling the lawsuit an attempt to stifle innovation. The OCC has reportedly approved or conditionally approved at least 21 trust banks, with 13 being crypto companies.