# Rain Seeks OCC Trust Bank Charter for Stablecoin Custody and Issuance

By Riza Dagoc

Canonical URL: https://www.tokenpost.com/news/regulation/27322
Published: 2026-10-07T09:14:06.000Z
Updated: 2026-10-07T09:14:06.000Z
Section: Regulation

> The proposed New York bank would hold digital assets and dollars, manage stablecoin reserves, and issue and redeem dollar-backed tokens for institutional clients.

Rain filed an application Oct. 5 to establish a national trust bank that would bring digital-asset custody, stablecoin reserve management and token issuance under a federally supervised structure, reducing its reliance on third-party custodians and issuers.

The proposed Rain National Trust Bank would be headquartered in New York and serve institutional clients. If approved, it would custody digital assets and U.S. dollars, manage reserves for permitted stablecoin issuers, and issue and redeem U.S. dollar-backed stablecoins.

The bank would operate as a separately capitalized, uninsured subsidiary. It would not accept deposits, offer consumer accounts or make commercial loans. Client assets would be segregated from the bank’s own assets.

Brandon Soto, formerly chief financial officer of Square Financial Services and Coastal Financial Corp., was named the proposed bank’s president and CEO. Rain would remain a stablecoin payments platform, with the trust bank operating as a separate subsidiary.

The application is subject to review by the Office of the Comptroller of the Currency and a public-comment process. The Independent Community Bankers of America sued the OCC on Oct. 2, arguing that the agency lacks authority to grant national trust charters to crypto firms conducting substantial non-fiduciary activities.