Rain Seeks Federal Trust Charter for Crypto-Backed Banking Services
Rain, a company specializing in stablecoin payment infrastructure, has taken a significant step by applying for a federal trust charter from the Office of the Comptroller of the Currency (OCC). The proposed Rain National Trust Bank, headquartered in New York, aims to provide digital asset custody, manage stablecoin reserves, and facilitate the issuance of dollar-backed tokens under the GENIUS Act. If approved, the bank will operate as an independently capitalized subsidiary, focusing on institutional customers and avoiding traditional banking services like deposits or lending.
The application comes on the heels of a legal challenge by the Independent Community Bankers of America against the OCC’s crypto trust charter framework. The group argues that the framework allows crypto firms to operate under less stringent oversight than traditional banks, potentially misleading consumers about federal deposit insurance. The lawsuit seeks to nullify the OCC’s chartering framework and related 2021 interpretive letter.
Rain is not alone in pursuing this charter. Circle, Agora, and Zerohash have also applied, with Circle recently securing final approval for its Circle National Trust. The OCC has reportedly granted approval to at least 21 trust banks, with a significant portion being crypto-focused. Rain’s application will now enter a public comment phase, with no specific timeline provided for regulatory approval.
Brandon Soto, former CFO at Square Financial Services, has been tapped as the prospective president and CEO of Rain National Trust Bank, pending OCC approval. Rain’s CEO, Farooq Malik, emphasized that clients seek fiduciary custody with federal regulatory oversight, underscoring the importance of the trust bank initiative.