Rain Seeks U.S. Charter for Crypto-Focused Trust Bank
Rain has taken a significant step by applying for a national trust bank charter in the U.S., aiming to custody digital assets and issue stablecoins. The proposed Rain National Trust Bank, headquartered in New York, would operate as a subsidiary under the Office of the Comptroller of the Currency (OCC) supervision. Unlike traditional banks, it would not accept deposits, offer consumer accounts, or make commercial loans. Instead, it would focus on fiduciary custody of digital assets and dollars, manage reserves for stablecoin issuers, and issue USD-backed stablecoins under the federal GENIUS Act.
The application comes amid legal challenges from community bankers who are suing the OCC over its rules supporting crypto national trust bank charters. The Independent Community Bankers of America (ICBA) filed a lawsuit on October 2, arguing that the OCC has exceeded its authority. The OCC, however, maintains that its April charter rule merely clarifies existing authority without expanding powers.
Rain CEO Farooq Malik emphasized that the proposed bank would provide a federally regulated fiduciary service for clients using the company's infrastructure. The company has named Brandon Soto, a former executive at Square Financial Services, as the proposed president and CEO of the new bank. The application is now subject to OCC review and a public comment period, with no specific timeline for approval.