Rain Eyes Federal Banking Status Amid Crypto Push

TLDR

• Rain has applied for an OCC national trust bank charter to expand federally supervised stablecoin and custody services.
• The proposed bank would manage digital assets, U.S. dollars, stablecoin reserves, issuance, and redemptions for institutional clients.
• Rain National Trust Bank would not accept consumer deposits, issue commercial loans, or provide FDIC-insured accounts.
• The application comes as more crypto firms, including Circle, Ripple, BitGo, and Fidelity, pursue federal trust bank structures.
• Rain’s filing faces regulatory review as traditional banking groups challenge the OCC’s authority to approve similar crypto charters.

Rain has applied for a national trust bank charter with the Office of the Comptroller of the Currency, seeking federal oversight for its stablecoin business. The proposed Rain National Trust Bank would operate from New York as a subsidiary serving institutional clients. The application remains subject to OCC review and public comment.

If approved, the trust bank would provide custody for digital assets and U.S. dollars, manage reserves for permitted stablecoin issuers, and issue or redeem dollar-backed stablecoins. Rain would continue operating its payments business outside the proposed bank. The filing arrives as stablecoin regulation remains active globally, with Circle seeking changes to European reserve rules during the latest MiCA review.

Trust Bank Would Have Limited Powers

The proposed bank would not operate like a traditional commercial bank. It would not accept consumer deposits, offer retail accounts, or make commercial loans. It would operate without Federal Deposit Insurance Corporation coverage. Rain would keep client assets separate from the bank’s assets and record them for identified owners.

The bank would not pledge, lend, or reuse reserves backing its stablecoins. That structure keeps the business focused on custody, reserve administration, issuance, and redemption. Stablecoin competition is also growing, with Open USD launching with backing from major payments companies as more firms build products around digital dollars and blockchain-based settlement.

OCC Charter Push Faces Banking Opposition

Rain joins a growing group of crypto companies seeking national trust charters. Circle, Ripple, BitGo, and Fidelity have pursued similar federal structures. Circle received final approval for its national trust bank in July. The payments market is also expanding, as crypto card payment volume reached new highs in 2026 alongside wider stablecoin use.

Traditional banking groups have challenged the OCC’s approach. The Independent Community Bankers of America sued the regulator, arguing that it lacks authority to grant national trust charters to crypto firms without traditional banking activities. The group also argues that these companies can gain banking privileges without meeting requirements applied to commercial lenders. Rain cannot begin operating the proposed trust bank unless the OCC approves the application. The review will include a public-comment period, while Rain continues its payment services. The public comment process allows parties to submit views before the OCC completes its review of Rain’s charter request.