Stablecoin Infrastructure Provider Rain Applies for US National Trust Bank Charter Amid OCC Crypto Lawsuit
Stablecoin payments infrastructure provider Rain has filed an application to establish a national trust bank headquartered in New York, marking a notable trend of crypto companies pursuing bank charters in the US. The application was submitted to the Office of the Comptroller of the Currency (OCC) shortly after the Independent Community Bankers of America sued the OCC over its crypto charter approvals. Upon approval, Rain National Trust Bank would offer fiduciary custody of digital assets and US dollars to institutional clients, reserve management for authorized stablecoin issuers, and issue and redeem dollar-backed stablecoins compliant with the GENIUS Act.
Rain Files for National Trust Bank Charter in New York
Rain announced on Monday that it applied to the Office of the Comptroller of the Currency (OCC) for a national trust bank charter to establish Rain National Trust Bank headquartered in New York. If approved, the bank will provide fiduciary custody of digital assets and US dollars for institutional clients, manage reserves for authorized stablecoin issuers, and facilitate issuing and redeeming dollar-backed stablecoins in line with the GENIUS Act.
Brandon Soto, former CFO of Square Financial Services, has been appointed president and CEO of the prospective national trust bank, pending OCC approval.
Rain's CEO and co-founder, Farooq Malik, emphasized that customers building on Rain desire their program assets held by a fiduciary accountable to a federal regulator.
Increasing Interest Among Crypto Firms for Bank Charters
Rain joins a growing number of crypto and payment companies pursuing national trust bank charters. On the same day, payments infrastructure firm Modern Treasury confirmed submitting an application to offer digital asset custody and related fiat services.
This trend indicates these companies' push for more robust regulation and expanded services within the traditional banking sector.
Legal Challenges Surrounding Crypto Trust Bank Licensing
However, the licensing drive faces opposition from community banks. On Friday, the Independent Community Bankers of America (ICBA) filed a lawsuit against the OCC, claiming the regulator had overstepped by allowing non-depository trust banks to perform extensive non-fiduciary activities.
The suit was filed in the U.S. District Court for the District of Columbia against OCC and Comptroller Jonathan Gould. ICBA argues that OCC's National Bank Chartering rule and the 2021 interpretive letter 1176 permit entities engaged in high-risk crypto and digital asset activities to enter the banking system under lightly regulated national charters instead of the more stringent traditional bank charters.
ICBA asserts this framework gives crypto trust banks a competitive advantage over community banks by allowing overlapping services without equivalent regulatory obligations, and consumers might be misled into assuming "national bank" status means federal deposit insurance.
The group requests the court to overturn OCC's March 2026 chartering rule and 2021 interpretive letter and to halt further approvals relying on them.
Industry Response to the Legal Dispute
On Monday, the Crypto Council for Innovation stated the lawsuit was an attempt to suppress innovation.
According to ICBA’s complaint, OCC has approved or conditionally approved at least 21 trust banks, of which at least 13 are crypto firms, highlighting the regulator’s growing activity in the digital assets space.
Why it matters
This news is significant as it highlights the ongoing trend of crypto companies seeking US bank charters to broaden their services and comply with regulatory standards. Concurrently, lawsuits from community banks reveal tensions between traditional banking interests and fintech innovation. The case involving Rain and the OCC exemplifies the current balance between crypto industry growth and regulatory challenges, offering insight into the future regulatory landscape for digital assets within the American financial system.
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