Rain Seeks US Charter for National Trust Bank Focused on Stablecoins

Stablecoin payments firm Rain has applied to the US Office of the Comptroller of the Currency (OCC) for a national trust bank charter. The company announced on Monday that it seeks to establish Rain National Trust Bank, headquartered in New York. The proposed bank would provide fiduciary custody for approved digital assets and fiat currency, manage reserves for stablecoin issuers, and issue US dollar-backed stablecoins under the GENIUS Act.

Rain clarified that the bank would not take deposits, offer consumer accounts, or make commercial loans. The company proposed Brandon Soto, a former chief financial officer of Coastal Financial Corp., as president and CEO pending OCC review. Rain CEO Farooq Malik emphasized the need for a fiduciary that answers to a federal regulator for clients building on Rain's platform.

The filing comes days after the Independent Community Bankers of America (ICBA) sued the OCC over crypto trust bank charters. The lawsuit challenges the OCC's March 2020 chartering rule and a 2021 interpretive letter, arguing that the regulator exceeded its authority. The ICBA claims the OCC has approved or conditionally approved 21 trust banks, with at least 13 being crypto companies.

Other crypto firms have also sought similar charters. In August, World Liberty Financial, the company behind the USD1 stablecoin, won conditional approval for its proposed national trust bank. Block applied for a federal trust bank charter in September to custody Bitcoin and stablecoins.