Stablecoin Firm Rain Seeks OCC National Trust Bank Charter
Rain has applied for a national trust bank charter from the Office of the Comptroller of the Currency to manage custody and stablecoin operations internally.
Stablecoin payments company Rain is looking to secure a national trust bank charter from the Office of the Comptroller of the Currency. The move aims to bring custody and stablecoin management under federal supervision, potentially reducing the firm's reliance on third-party banking partners.
The proposed entity, Rain National Trust, would be based in New York. Its primary functions would include providing fiduciary custody for digital assets and U.S. dollars, managing reserves for stablecoin issuers, and handling the issuance and redemption of dollar-backed tokens for institutional clients.
Rain stated that the proposed bank would not accept consumer deposits, offer commercial loans, or provide consumer accounts. It would also not carry FDIC insurance. The company noted that client assets would be kept separate from the bank’s own holdings.
This application follows a trend of crypto firms pursuing limited-purpose national trust-bank charters. Other companies, including Circle, Ripple, BitGo, and Fidelity, have previously received initial approvals from the OCC. Circle obtained final approval for its federal trust bank in New York in late July.
The push for these charters has faced pushback from the broader banking sector. The Independent Community Bankers of America recently filed a lawsuit against the OCC, challenging the agency's authority to issue such charters to crypto firms that do not perform traditional banking services. The group argues that this structure grants banking privileges to crypto companies without imposing the same obligations required of traditional lenders.
Rain's application is currently pending regulatory approval and a public comment period.
