Rain seeks U.S. national trust bank charter for crypto custody

Rain, a stablecoin payments platform, has taken a significant step toward establishing a national trust bank in the U.S. The company has applied to create the Rain National Trust Bank (RNTB), headquartered in New York. This move aligns with broader efforts by crypto firms to secure a U.S. banking structure. The OCC would supervise RNTB, which would offer custody services for digital assets and U.S. dollars, stablecoin reserve management, and issuance and redemption of dollar stablecoins.

RNTB would not engage in traditional banking activities like accepting deposits or providing consumer accounts. Instead, it would focus on institutional custody and stablecoin services. The bank would keep client assets separate from its own, ensuring a clear division between customer holdings and operational funds. Rain would continue running its stablecoin payments platform independently.

The application comes amid legal challenges to the OCC’s authority to grant national trust bank charters to crypto firms. The Independent Community Bankers of America (ICBA) has sued the OCC, arguing that the agency overstepped its authority. The lawsuit also claims the charter framework lacks key requirements, such as capital and liquidity standards, consolidated supervision, and Federal Deposit Insurance Corporation coverage.