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, following a trend of crypto firms seeking similar approvals. 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 for digital assets and US dollars, reserve management for stablecoin issuers, and issue dollar-backed stablecoins under the GENIUS Act. Brandon Soto, former Square Financial Services CFO, is set to lead the proposed bank, pending OCC review.

Rain's move comes as multiple crypto and payments companies pursue national trust bank charters. Modern Treasury also announced its application on Monday, seeking approval for digital asset custody and related fiat services. Rain CEO Farooq Malik emphasized that clients want assets held by a federally regulated fiduciary.

However, the push for crypto trust charters faces opposition from community banks. The Independent Community Bankers of America (ICBA) sued the OCC on Friday, alleging the regulator overstepped by allowing non-depository trust banks to engage in extensive non-fiduciary activities. The lawsuit, filed in the US District Court for the District of Columbia, targets the OCC's 2026 chartering rule and a 2021 interpretive letter.

The ICBA argues that the framework gives crypto trust banks an unfair competitive advantage by allowing them to offer services similar to community banks without the same regulatory obligations. The group also warned that consumers might mistakenly believe their assets are federally insured due to the “national bank” designation. The ICBA seeks to overturn the OCC’s rules and halt further charter approvals relying on them. The Crypto Council for Innovation criticized the lawsuit as an attempt to stifle innovation.