Cryptoupdated 1h ago2 min read
Rain Files With OCC to Establish Rain National Trust Bank in New York
Rain seeks OCC charter for a national trust bank to custody digital assets and dollars. Bank would issue and redeem dollar-backed stablecoins and manage stablecoin reserves.
11 outlets told this the same way.
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Rain seeks OCC trust bank
Rain filed an application with the Office of the Comptroller of the Currency to establish Rain National Trust Bank, a proposed national trust bank headquartered in New York. Rain said the proposed bank would provide fiduciary custody of digital assets and U.S. dollars, manage reserves for permitted stablecoin issuers, and issue and redeem dollar-backed stablecoins for institutional clients. Rain said the proposed trust bank would not accept deposits, make commercial loans, offer consumer accounts, or carry FDIC insurance, and it would segregate client assets from the bank’s own holdings.
Rain said stablecoin reserves held by the proposed bank would be lent, pledged or reused, and Rain said the application is subject to OCC approval and a public-comment period. Rain’s bid adds to a broader rush for limited-purpose national trust-bank charters that includes Circle, Ripple, BitGo and Fidelity among firms that received initial OCC approvals in December.
Leadership and the stated goal
Farooq Malik, Rain’s co-founder and CEO, said institutions building on Rain want “the assets behind their programs held by a fiduciary that answers to a federal regulator.”
Brandon Soto, Rain’s proposed President and Chief Executive Officer, said a trust bank’s “first job is simple. Know what you hold, know who you hold it for, and keep it safe.”
Rain said its partners’ stablecoin card, wallet, and money movement programs currently rely on assets sitting across state licenses, third-party custodians and outside stablecoin issuers.
Rain said the proposed trust bank would be a separate subsidiary that holds client assets in custody, as a fiduciary and subject to OCC examination, while Rain remains a payments platform.
Rain said the proposed bank would operate as an uninsured national trust bank, meaning it would not carry FDIC deposit insurance, and it would not pledge, lend, or reuse reserves backing the stablecoins issued by the proposed bank.
Court fight over crypto charters
The Independent Community Bankers of America sued the OCC, arguing that the agency lacks authority to grant national trust charters to crypto firms that do not offer traditional banking services. ICBA President and CEO Rebeca Romero Rainey said, “Congress did not create the national trust charter as a side door into the banking system for crypto firms seeking the credibility of a federal bank charter,” and she said the OCC has declined to comment on the suit. Rain’s application arrives as the OCC charter route draws opposition from traditional banks across the United States, and Rain’s filing is subject to OCC review and a public-comment process.
Rain said the proposed trust bank would be headquartered in New York and operate as a separately capitalized subsidiary under OCC supervision, while Rain itself would remain a stablecoin payments platform. Rain’s bid also comes as the OCC has approved or conditionally approved 21 trust banks, at least 13 of them crypto companies, according to the complaint described in the sources.