Rain is seeking a national trust bank charter to bypass third-party banks
Stablecoin payments company Rain has applied for an OCC national trust-bank charter through a proposed New York subsidiary. If approved, it would custody digital assets and dollars, manage reserves for permitted stablecoin issuers, and issue and redeem dollar-backed stablecoins for institutional clients. The bank would not accept deposits, make loans, offer consumer accounts, or carry FDIC insurance. Rain says client assets would be segregated, while stablecoin reserves could be lent, pledged, or reused. The application comes amid a broader push by crypto firms for federal trust-bank charters and opposition from traditional banks. The ICBA recently sued the OCC, challenging its authority to grant such charters to crypto companies. Rain’s application is pending OCC review and public comment.
