Rain Applies for National Trust Bank Charter in New York
Rain has applied to the Office of the Comptroller of the Currency to establish "Rain National Trust Bank" in New York to custody digital assets and issue dollar-backed stablecoins.
Rain, a New York-based stablecoin payments infrastructure company, has applied to the Office of the Comptroller of the Currency to establish "Rain National Trust Bank" in New York.
The proposed entity will specialize in fiduciary custody of digital assets and dollars, as well as reserve management for licensed stablecoin issuers. Fiduciary custody refers to holding client assets in trust, isolating these assets from the company's own corporate assets.
It will also issue and redeem dollar-backed stablecoins under the GENIUS Act, a narrow charter that does not constitute a retail bank and is not subject to FDIC insurance, meaning it allows specific activities without accepting deposits from the general public.
Brandon Soto, former CFO of Square Financial Services, has been nominated as CEO of the entity, while Modern Treasury announced it submitted a similar application on the same day. The application comes as US bankers dispute the limits of these charters with the OCC.
What Do These Terms Mean?
Stablecoin: A digital currency that maintains a fixed value by being pegged to an asset such as the dollar, commonly used in payments and transfers.
National Trust Charter: A federal license that allows a company to conduct fiduciary activities and asset custody across the United States without being a full commercial bank.
GENIUS Act: A US law regulating the issuance of dollar-backed stablecoins and defining requirements for issuers and their reserves.
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