Rain applies for US trust bank charter amid community bank opposition
- Rain has filed an application with the Office of the Comptroller of the Currency (OCC) to establish Rain National Trust Bank in New York.
- If approved, the bank will provide fiduciary custody of digital assets and US dollars for institutional clients.
- Brandon Soto, former CFO of Square Financial Services, is proposed as president and CEO, pending OCC review.
- Modern Treasury also submitted an application to offer digital asset custody and related fiat services on the same day.
- The Independent Community Bankers of America has sued the OCC, claiming it allowed non-depository trust banks to conduct risky activities under lightly regulated charters.
Rain’s move reflects a broader trend among crypto companies seeking national trust bank charters, despite pushback from community banks concerned about regulatory disparities. The ICBA argues this regulatory framework allows crypto trust banks to compete unfairly with traditional banks.
At least three crypto companies, including Rain and Modern Treasury, are pursuing national trust bank charters as part of a growing trend in the industry.(Source)
