Rain Seeks OCC Charter for Stablecoin Trust Bank

Rain has applied to the Office of the Comptroller of the Currency for a national trust bank charter that would let it provide custody, stablecoin reserve management and dollar-backed stablecoin services to institutional clients, the company announced October 5. The proposed Rain National Trust Bank would be based in New York, but cannot begin operating unless it receives required regulatory approvals. Rain says the proposed bank would offer fiduciary custody of digital assets and U.S. dollars, manage reserves for permitted stablecoin issuers and issue and redeem dollar-backed stablecoins. The application follows a business model focused on institutional services rather than conventional banking: Rain says the bank would not accept deposits, offer consumer accounts or make commercial loans. The company also says the proposed institution would be uninsured and separately capitalized, with client assets kept separate from its own. Rain says stablecoin reserves held by the bank would not be pledged, lent or reused. These descriptions are the company’s proposed safeguards; the bank has not been approved or begun operating.