Rain filed an application with the Office of the Comptroller of the Currency (OCC) to establish Rain National Trust Bank (RNTB), a national trust bank based in New York.
If approved, RNTB will bring under federal supervision the functions of fiduciary custody for digital assets and U.S. dollars, reserve management for stablecoin issuers, and the issuance and redemption of dollar-backed stablecoins for institutional clients.
The company announced that Brandon Soto, former CFO of Square Financial Services and, more recently, CFO of Coastal Financial Corporation, will serve as the proposed president and CEO of the new entity. Unlike a conventional commercial bank, RNTB will not accept deposits, offer consumer accounts, or provide commercial loans.
Farooq Malik, CEO and co-founder of Rain, explained that institutions operating on the platform require the assets backing their programs to be held in custody by a fiduciary subject to a federal regulator.
Currently, these assets are distributed across state licenses, third-party custodians, and independent stablecoin issuers. The proposed trust bank will operate as a separate, independently capitalized subsidiary, supervised and examined by the OCC, while Rain will continue operating as a stablecoin payments platform and principal member of Visa and Mastercard.
Source: Rain Files Application With the OCC to Establish Rain National Trust Bank
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