Stablecoin payments company Rain has applied to the Office of the Comptroller of the Currency for a national trust bank charter and plans to establish Rain National Trust in New York. The proposed entity would serve institutional clients with digital asset and U.S. dollar custody, stablecoin reserve management, and issuance and redemption services for dollar-pegged stablecoins. Rain said the trust bank would not take deposits, make commercial loans, offer consumer accounts, or provide FDIC deposit insurance. Client assets would be segregated from the bank’s own assets, while stablecoin reserves would be managed directly by the trust bank rather than through third-party banking partners. Rain’s filing comes as more crypto firms pursue the same charter. Circle, Ripple, BitGo, and Fidelity have previously received preliminary OCC approval, and Circle received final approval in July this year. The application still faces OCC review and a public comment process. Last week, the Independent Community Bankers of America sued the OCC, challenging its authority to grant national trust bank charters to crypto companies that do not provide traditional banking services.
Stablecoin payments company Rain has applied to the U.S. Office of the Comptroller of the Currency, or OCC, for a national trust bank charter and plans to set up Rain National Trust in New York.
According to the company, the proposed trust bank would provide institutional clients with digital asset and U.S. dollar custody, stablecoin reserve management, and issuance and redemption services for dollar-pegged stablecoins.
Rain said the entity would not accept deposits, make commercial loans, or offer consumer accounts. It also would not provide Federal Deposit Insurance Corporation, or FDIC, deposit insurance. Client assets would be kept separate from the bank’s own assets, and stablecoin reserves would be managed directly by the trust bank, reducing reliance on third-party banks for custody, reserve management, and stablecoin issuance and redemption.
Rain’s application adds to a broader push by crypto companies seeking national trust bank charters. Circle, Ripple, BitGo, and Fidelity have previously received preliminary OCC approval. Circle also received final approval in July this year.
The application still must go through OCC review and a public comment process. Last week, the Independent Community Bankers of America, or ICBA, sued the OCC, questioning its authority to grant national trust bank charters to crypto firms that do not offer traditional banking services.
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