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- Stablecoin payments company Rain applied to the OCC on Oct. 5 to create Rain National Trust Bank in New York.
- The proposed bank would provide digital asset custody and manage reserves for stablecoin issuers under former Square executive Brandon Soto.
- Rain's filing proceeds amid a separate ICBA lawsuit against the OCC's crypto trust charter framework, and approval is not guaranteed.
Stablecoin payments company Rain has applied to create a U.S. national trust bank, moving to bring digital asset custody, reserve management and stablecoin issuance under direct federal supervision.
The application comes three days after the Independent Community Bankers of America sued the Office of the Comptroller of the Currency over its framework for granting national trust bank charters to crypto firms.
Rain National Trust Bank Would Handle Custody and Stablecoin Reserves
Rain filed its application with the OCC on Oct. 5 to establish Rain National Trust Bank in New York. If approved, the bank would provide fiduciary custody of digital assets and U.S. dollars for institutional clients.
It would also manage reserves for permitted stablecoin issuers and issue and redeem dollar-backed stablecoins, including tokens used to settle Rain-powered payment programs.
The proposed bank would not accept deposits, offer consumer accounts or make commercial loans. Assets held in custody would be segregated, while Rain would continue operating separately as a stablecoin payments platform.
Former Square Executive Brandon Soto Would Lead Proposed Bank
Rain has named Brandon Soto as the proposed president and chief executive of the trust bank, subject to OCC approval.
Soto previously served as chief financial officer of Square Financial Services, where he worked through the company’s bank charter process and managed finance and capital. He later served as CFO of Coastal Financial Corporation and previously worked at Green Dot Bank.
Rain said the trust structure would allow assets supporting its partners’ card, wallet, and money movement programs to sit with a federally supervised fiduciary.
ICBA Challenges OCC Crypto Trust Bank Framework
Rain’s filing comes amid a separate court challenge to the OCC’s approach to national trust bank charters.
The lawsuit is separate from Rain’s application, but its outcome could affect the OCC’s legal framework for granting national trust charters to crypto businesses.
Rain’s application will now move through the OCC review and public-comment process. Approval is not guaranteed.
