Rain applies for national trust bank to support stablecoin services
Rain announced on October 5 that it had applied to the OCC to establish Rain National Trust Bank, a proposed New York-based institution supporting its stablecoin payments ecosystem. If approved, the trust bank would provide digital asset and dollar custody, reserve management and stablecoin issuance and redemption for institutional clients. The application adds a specific payments infrastructure company to the group seeking federal supervision for functions currently spread across several providers and licensing arrangements.
Rain announced on October 5 that it had applied to the OCC to establish Rain National Trust Bank, a proposed New York-based institution supporting its stablecoin payments ecosystem. If approved, the trust bank would provide digital asset and dollar custody, reserve management and stablecoin issuance and redemption for institutional clients. The application adds a specific payments infrastructure company to the group seeking federal supervision for functions currently spread across several providers and licensing arrangements.
Rain named former Square Financial Services chief financial officer Brandon Soto as the proposed bank’s president and chief executive, subject to OCC review. The planned institution would be a separately capitalized subsidiary. Rain said it would not accept deposits, provide consumer accounts or make commercial loans. Its business would center on fiduciary custody and related stablecoin functions, defining a more limited operating model than that of a conventional retail or commercial bank.
The company’s partners operate card, wallet and money movement programs, with underlying assets currently held through different arrangements. Bringing some of those functions under one trust subsidiary could simplify oversight and reconciliation. It would also put responsibility for safeguarding client assets within a defined federally supervised entity. The proposal describes segregation of custody assets and reserve arrangements, making ownership records and controls central to how the institution would operate if approved.
The application comes as community banking groups challenge the OCC’s broader trust charter policy in court. Rain’s filing is a request for authorization, not evidence that approval has already been granted. The OCC’s review and any conditions attached to a decision will determine what services can launch. For Rain, the immediate policy milestone is the application and proposed leadership team, with federal authorization remaining the necessary step before the trust bank begins its planned activities.