Rain Applies for OCC Charter for Its Own Trust Bank
Rain wants to handle its own custody and reserve management for dollar-backed stablecoins under OCC oversight, just like Circle and Ripple did earlier.
Key Takeaways
- Stablecoin company Rain has filed an application with the U.S. OCC for a trust bank charter.
- The proposed bank would hold digital assets and dollars in custody and manage reserves for permitted stablecoin issuers.
- Rain wants to become less dependent on third-party banks; the application still needs approval and must go through a public comment process.
Stablecoin company Rain has filed an application with the U.S. Office of the Comptroller of the Currency, better known as the OCC, for a trust bank charter. With its own national trust bank, the company wants to rely less on third-party banks for custody, reserve management, and issuing and redeeming dollar-backed stablecoins for institutional clients.
Own Bank Structure
According to the application, the proposed Rain National Trust bank would hold digital assets and U.S. dollars in fiduciary custody. The entity would also manage reserves for permitted stablecoin issuers. That would bring part of the stablecoin infrastructure under federal supervision.
National trust banks are allowed to offer custody and fiduciary services, but they cannot take consumer deposits or make loans. That makes them different from traditional commercial banks. Rain says the proposed bank would not take deposits, would not make commercial loans, and would not offer consumer accounts. It would also not be covered by FDIC insurance.
More Applications at the OCC
Rain's move fits into a broader wave of crypto companies seeking a limited national trust bank charter. Circle, Ripple, BitGo, and Fidelity were among the firms that already received initial approval from the OCC in December. Circle also got final approval at the end of July to run its own federal trust bank in New York.
The OCC reviews these applications strictly, looking at things like capital, governance, and risk management. That makes it clear that the path to federal supervision is not just about getting a license, but also about a tougher review of how a crypto company sets up its bank-like services.
Why This Matters for Europe
For European crypto readers, this application shows how stablecoin companies in the U.S. are increasingly trying to bring banking functions closer to themselves. That could matter for firms working with institutional clients, since custody and settlement would then need to move through fewer separate intermediaries. At the same time, the outcome is still uncertain, because the application still needs OCC approval and must go through a public comment process.
