Rain applies for national trust bank to expand stablecoin services

Rain has applied to the Office of the Comptroller of the Currency (OCC) to establish Rain National Trust Bank, a proposed New York-based national trust bank focused on institutional digital asset payments.

If approved, the bank would provide fiduciary custody of digital assets and US dollars, reserve management for permitted stablecoin issuers, and issuance and redemption of US dollar-backed stablecoins.

The proposed bank would bring those functions behind Rain partners’ programs under a single federal supervisory framework, with client assets segregated from the bank’s own assets and stablecoin reserves kept from being pledged, lent or reused.

The proposed Rain National Trust Bank would be an uninsured, limited-purpose trust bank and would not take deposits, provide consumer accounts or make commercial loans.

Rain said the bank would give its partners a federally supervised option for holding assets supporting stablecoin cards, wallets and money movement programs, which currently rely on a combination of state licenses, third-party custodians and stablecoin issuers.

Rain would continue operating its payments platform separately, including its existing Visa and Mastercard Principal Member relationships, while the trust bank would be separately capitalized and subject to OCC supervision and examination.

Brandon Soto has been named proposed President and CEO of Rain National Trust Bank, pending OCC review.

Soto most recently served as CFO of Coastal Financial Corporation and previously was CFO of Square Financial Services, Block’s Utah-chartered industrial bank, where he helped prepare its charter application and led finance, treasury and capital management.