Rain Seeks OCC Trust Charter for Stablecoin and Digital Asset Banking

Rain, a stablecoin payments infrastructure provider, has applied to establish a national trust bank in New York, aiming to bring more stablecoin and digital-asset services under the oversight of the U.S. Office of the Comptroller of the Currency (OCC). The company filed an application with the OCC to create Rain National Trust Bank, which, if approved, would offer fiduciary custody for digital assets and U.S. dollars, manage reserves for permitted stablecoin issuers, and issue and redeem dollar-backed stablecoins under the GENIUS Act framework.

Rain’s proposed bank would be led by Brandon Soto, formerly CFO of Square Financial Services, pending OCC review. The move reflects a broader trend among crypto and payments firms seeking trust bank charters to support regulated innovation. Rain CEO Farooq Malik emphasized the value of fiduciary oversight, noting that institutions want assets held by a federally regulated entity.

The application comes amid legal challenges from community banks, including a lawsuit by the Independent Community Bankers of America (ICBA) against the OCC. The ICBA argues that the OCC’s chartering approach allows crypto trust banks to perform activities beyond traditional trust charters, potentially giving them a competitive advantage and misleading consumers about federal insurance protections.

Supporters of the chartering approach, including the Crypto Council for Innovation, argue that the lawsuit aims to stifle innovation. The outcome of Rain’s application and the ICBA’s legal challenge will determine how quickly regulated banking rails for stablecoin services expand and their durability under judicial scrutiny.