Stablecoin payments company Rain said it filed an application with the US Office of the Comptroller of the Currency to establish Rain National Trust Bank. The proposed entity would be headquartered in New York and supervised by the OCC. Rain said the bank would focus on custody, reserve management and stablecoin issuance and redemption. The application still requires regulatory approval.
Rain announced the filing on 5 October and named Brandon Soto as the proposed president and chief executive. Soto previously served as chief financial officer of Square Financial Services and Coastal Financial Corporation. The company said the new entity would be separately capitalised and would operate alongside its existing payments platform.
PROPOSED SERVICES STAY LIMITED
If approved, the trust bank would provide fiduciary custody of digital assets and US dollars for institutional clients. It would also manage reserves for permitted stablecoin issuers and issue or redeem US dollar-backed stablecoins. Rain said the bank would not accept deposits, offer consumer accounts or make commercial loans. The proposed institution would be uninsured and would segregate custody assets from its balance sheet.
Rain currently supports card, wallet and money-movement programmes whose underlying assets sit across state-licensed entities, third-party custodians and stablecoin issuers. The company said a national trust bank would bring those functions under one federal supervisory framework. Its existing card and payment partnerships would continue while the application is assessed.
OCC REVIEW COMES NEXT
The filing is an application rather than an approval, and Rain said the review would include a public comment period. The proposed bank cannot start operating before the OCC grants all required approvals. Independent reporting confirmed the announced filing and Soto's proposed appointment but did not report a regulator decision.
The immediate milestone is publication of the public portion of the application, followed by the OCC's review of the proposed activities, controls and capital. Any authorisation could carry conditions or require changes to the planned operating model. Until a decision is issued, Rain remains a payments platform and the trust bank remains proposed.