Rain applies for an OCC national trust bank charter, aiming to bypass third-party banks in managing stablecoin operations.

BlockBeats news, October 7 — Stablecoin payment company Rain has applied to the U.S. Office of the Comptroller of the Currency (OCC) for a national trust bank charter, planning to establish Rain National Trust in New York to provide institutional clients with digital asset and U.S. dollar custody, stablecoin reserve management, and issuance and redemption services for U.S. dollar-pegged stablecoins.

Rain stated that the proposed trust bank will not take deposits, make commercial loans, or offer consumer accounts, nor will it provide FDIC deposit insurance. Client assets will be segregated from the bank's own assets, and stablecoin reserves will also be managed directly by the bank, thereby reducing reliance on third-party banks for asset custody, reserve management, and stablecoin issuance and redemption.

Rain's application joins a wave of crypto industry efforts to secure national trust bank charters. Companies such as Circle, Ripple, BitGo, and Fidelity have previously received preliminary approval from the OCC, and Circle obtained final approval in July of this year.

However, the charter application still requires OCC approval and a public comment period. The Independent Community Bankers of America (ICBA) sued the OCC last week, questioning its authority to grant national trust bank charters to crypto companies that do not provide traditional banking services.