Payments company Rain has applied for a national trust bank charter with the Office of the Comptroller of the Currency (OCC), seeking federal oversight for its stablecoin business. If granted, the charter would allow the firm to expand its federally supervised stablecoin and custody services. A national charter places a company under a single federal supervisor, an alternative to the state-by-state licensing regimes that payments firms typically assemble. The proposed Rain National Trust Bank would operate from New York as a subsidiary serving institutional clients. The application remains subject to OCC review and public comment.

If approved, the trust bank would provide custody for digital assets and U.S. dollars, manage reserves for permitted stablecoin issuers, and issue or redeem dollar-backed stablecoins. All of these activities would be geared toward institutional clients rather than the general public. Rain would continue operating its payments business outside the proposed bank.

The filing arrives as stablecoin regulation remains active around the world. In Europe, Circle is seeking changes to reserve rules during the latest review of the Markets in Crypto-Assets (MiCA) framework.

Limited Powers by Design

The proposed bank would not operate like a traditional commercial bank. Rain National Trust Bank would not accept consumer deposits, offer retail accounts, or make commercial loans, and it would operate without Federal Deposit Insurance Corporation (FDIC) coverage.

Under the proposal, Rain would keep client assets separate from the bank's own assets and record them for identified owners. The bank would also not pledge, lend, or reuse the reserves backing its stablecoins. Segregation and a prohibition on reusing reserves are the kinds of safeguards institutional allocators typically look for when choosing a custodian. That structure keeps the business focused on custody, reserve administration, issuance, and redemption.

Competition in the stablecoin market is also intensifying. Open USD has launched with backing from major payments companies, as a growing number of firms build products around digital dollars and blockchain-based settlement.

Banking Groups Push Back

Rain joins a growing group of crypto companies seeking trust charters. Circle, Ripple, BitGo, and Fidelity have all pursued similar federal structures, and Circle received final approval for its national trust bank in July.

The broader payments market is expanding as well: crypto card payment volume reached new highs in 2026 alongside wider stablecoin use.

Traditional banking groups, however, have challenged the OCC's approach. The Independent Community Bankers of America has sued the regulator, arguing that it lacks the authority to grant national trust charters to crypto firms without traditional banking activities. The group also contends that these companies can gain banking privileges without meeting the requirements applied to commercial lenders. How that litigation is resolved could shape whether the federal pathway these firms are pursuing remains available.

Rain cannot begin operating the proposed trust bank unless the OCC approves the application. The review will include a public comment period, allowing parties to submit their views before the regulator completes its evaluation of the charter request. In the meantime, Rain will continue to run its payment services.

This article first appeared on CoinCentral: Rain Eyes Federal Banking Status Amid Crypto Push.