Rain seeks US trust bank charter days after OCC sued over crypto charters

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Institutional clients who use Rain for custody or stablecoin services are the group most directly affected tomorrow morning, because the company has filed to move those functions into a New York national trust bank under OCC supervision. That would place those services inside a separately capitalized subsidiary instead of leaving them in their current setup, and the filing says the bank is meant for institutional clients.

In practice, the filing changes what the proposed entity could do with client funds and bank-style services: it would hold digital assets and dollars, manage stablecoin reserves, and issue and redeem dollar-backed tokens, while not accepting deposits or making commercial loans. That means the application describes a trust bank focused on custody and stablecoin functions rather than a full-service commercial bank. (per thedefiant.io)