The stablecoin payments infrastructure company announced Monday (Oct. 5) that it has applied to the Office of the Comptroller of the Currency (OCC) to establish Rain National Trust Bank (RNTB).
If approved, RNTB will “bring the custody, reserve management, and stablecoin issuance and redemption functions behind Rain partners’ programs under a single federal supervisory framework,” Rain said in a news release.
The release noted that Rain’s partners offer stablecoin card, wallet, and money movement programs whose assets sit across state licenses and third-party custodians/stablecoin issuers. By establishing a bank, Rain says it can expand its offerings to include fiduciary custody of assets under OCC supervision and examination, as well as stablecoins issuance/redemption.
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“The institutions building on Rain want the assets behind their programs held by a fiduciary that answers to a federal regulator,” said Farooq Malik, Rain’s co-founder and CEO. “Rain National Trust Bank is how we plan to meet that expectation. Rain remains a payments platform. The proposed trust bank will be a separate subsidiary that holds client assets in custody, as a fiduciary and subject to OCC examination.”
The news comes one day after money movement infrastructure company Modern Treasury announced its plans to seek OCC approval to become a national trust bank.
“We believe stablecoins are foundational economic infrastructure for the future,” Matt Marcus, co-founder and CEO of Modern Treasury, said in a news release. “We have now fully integrated stablecoins to our payments platform. Pursuing this charter will add direct federally supervised digital asset custody and related services to the infrastructure our customers already use.”
As PYMNTS noted in that report, the OCC’s approval process for digital asset companies looking for national banking charters is seeing some pushback from the banking world.
The Independent Community Bankers of America (ICBA) sued the regulator last week, alleging that crypto firms seeking charters face less OCC scrutiny than community banks.
“Congress did not create the national trust charter as a side door into the banking system for crypto firms seeking the credibility of a federal bank charter,” ICBA President and CEO Rebeca Romero Rainey said in a news release announcing the litigation. The OCC has declined to comment on the suit.
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