At 21:21 UTC on October 5, 2026, stablecoin payments company Rain announced that it had applied to the Office of the Comptroller of the Currency to establish Rain National Trust Bank. The proposed New York institution has not been approved, and the release gives no OCC filing number or transaction amount.
Rain wants the trust bank to place custody, stablecoin reserve management, and issuance and redemption under one federal supervisor. The applicant would be a separately capitalized Rain subsidiary rather than a conversion of the existing payments company. Rain would remain a stablecoin payments platform and a principal member of both Visa and Mastercard.
The proposed bank would serve institutional clients through three lines of business. It would safeguard approved digital assets and US dollars as a fiduciary. It would hold and administer reserves for permitted stablecoin issuers under the GENIUS Act. It would also issue and redeem US dollar-backed stablecoins as issuer of record. Each activity remains conditional on OCC approval.
Rain says assets supporting its partners’ card, wallet, and money movement programs currently sit across state licenses, third-party custodians, and third-party stablecoin issuers. Its partners serve millions of end users. A federal trust subsidiary would give those programs another option for holding assets, administering reserves, and handling issuance and redemption within the same corporate group.
What the proposed bank would not do
Rain National Trust Bank would be an uninsured, limited-purpose trust bank. It would not accept deposits, offer consumer accounts, or make commercial loans. It would not have FDIC insurance because it would not take deposits. Those limits separate the proposal from a commercial bank that funds lending with customer deposits.
Client assets would be custody property held for identified owners rather than liabilities of the trust bank. Rain says those assets would be segregated from the subsidiary’s own assets. The reserves behind any stablecoin issued by the trust bank would not be pledged, lent, or reused. That structure matters to operators because the application covers both safekeeping and the reserve assets used to support redemption.
The filing does not change Rain’s existing card, wallet, or money movement programs today. The company said those programs will continue with their current partners while the OCC reviews the application. Rain describes the trust bank as a multi-year initiative that would add a federally supervised option alongside its current infrastructure.
For a partner already using Rain, approval could reduce the number of outside entities involved in custody, reserve administration, issuance, and redemption. It would also concentrate more operational responsibility inside Rain’s group. The release does not set service-level terms, migration rules, eligible asset lists, or procedures for moving custody to another provider. Program operators will need those details before comparing the proposed bank with their current custodians and issuers.
The three proposed businesses also create different dependencies. Fiduciary custody concerns who holds an institution’s digital assets and dollars. Reserve management concerns who administers the assets backing another permitted issuer’s stablecoin. Issuance and redemption would put Rain National Trust Bank itself in the issuer-of-record role for US dollar-backed tokens. The announcement presents all three under one charter, but it does not say that every institutional client must use every service.
The segregation commitment applies to client custody assets, while the no-pledging, no-lending, and no-reuse commitment applies to reserves backing stablecoins issued by the proposed bank. Those are distinct protections. The release does not identify the approved digital assets the bank would custody, the permitted issuers whose reserves it would administer, or the stablecoins it might issue. It also does not describe redemption windows or how reserve assets would be reported. Until the public application supplies more detail, institutions cannot assess the exact asset and liquidity rules behind the proposal.
Federal supervision and leadership
Farooq Malik, Rain’s co-founder and CEO, said institutions using the platform want program assets held by a fiduciary that answers to a federal regulator. He described the proposed bank as a separate subsidiary that would hold client assets in custody and undergo OCC examination.
Rain named Brandon Soto as the proposed president and CEO, subject to OCC review. Soto most recently served as executive vice president and chief financial officer of Coastal Financial Corporation. Before that, he was chief financial officer of Square Financial Services, Block’s Utah-chartered industrial bank. Rain says he helped prepare that bank’s charter application and later led finance, treasury, and capital management. He previously held chief financial officer and chief administrative officer roles at Green Dot Bank.
Soto said the proposed institution is being designed around clear ownership, daily reconciliation, controls, and capital. Those are plans in an application rather than findings from an OCC examination. The regulator has not yet published an approval, examination result, or operating conditions for Rain National Trust Bank.
The company says its current platform is used by more than 100 organizations. It also says its cards work at more than 175 million merchant locations across over 200 countries and territories. These figures describe Rain’s existing payments reach, not the proposed trust bank’s client base. The trust bank would begin with no operating history and could open only after receiving every required OCC approval.
What happens next
The OCC review includes a public comment period and follows the regulator’s own timetable. Rain said the public portion of its application would appear on the OCC website in the coming days. The company did not give a comment deadline, decision date, or target opening date.
Rain worked with Paul Hastings to prepare the application. The next verifiable milestone is the OCC’s publication of the public filing. That document should provide the application number and may define the proposed asset scope, capital arrangements, governance, and controls more precisely than the announcement. Until then, Rain’s current programs remain unchanged and the trust bank cannot operate.
