New York, October 5th / PRNewswire / -- Rain is an enterprise-level infrastructure company focused on stablecoin payments. Today, the company announced that it has submitted an application to the United States Monetary Supervision Agency ( OCC ) to establish Rain National Trust Bank ( RNTB ), a proposed national trust bank headquartered in New York. If approved, RNTB will bring the custody, reserve management, as well as stablecoin issuance and redemption functions behind its Rain partner projects, under a unified federal regulatory framework. Rain also announced that Brandon Soto will serve as the proposed president and chief executive officer of Rain National Trust Bank .
The partners of Rain operate stablecoin cards, wallets, and fund transfer projects for millions of end-users. Currently, the assets behind these projects are distributed among state-licensed entities, third-party custodians, and third-party stablecoin issuers. The National Trust Bank will enable Rain to expand its services under the supervision and inspection of OCC, including entrusted custody of assets, as well as the issuance and redemption of stablecoins.
Rain, Co-Founder and CEO, stated: "For institutions that build their business on Rain, we hope that the assets behind their projects are held by a trustee responsible to federal regulatory authorities. Rain National Trust Bank is the way we plan to meet this expectation. Rain will still be a payment platform. The proposed trust bank will be an independent subsidiary that will hold customer assets in a fiduciary capacity and be subject to OCC oversight."
Rain National Trust Bank What will it do?
If approved, RNTB will provide services to institutional customers in the digital asset payment ecosystem through three business lines:
- Management: Holds approved digital assets and fiat assets in a fiduciary capacity, with customer assets kept separate from the proposed bank's own assets.
- Reserve Management: According to GENIUS Act, reserves are held and managed for authorized stablecoin issuers.
- Issuance and Redemption: In accordance with GENIUS Act, issue US dollar-backed stablecoins as the registered issuer.
Rain National Trust Bank doesn't do anything.
If approved, as a state-owned trust bank without insurance, RNTB will not accept deposits nor issue commercial loans. RNTB The assets held by customers will be managed as custodial assets for identified owners, rather than bank liabilities; RNTB The reserves corresponding to any stablecoins issued will not be pledged, lent, or reused. RNTB Will not provide consumer accounts. Rain Is not a bank and will continue to function as a stablecoin payment platform through its other subsidiaries, as well as the main member of Visa and Mastercard; RNTB Will be a separately funded subsidiary that is supervised and inspected by OCC.
Management
Brandon Soto will assume the role of President and Chief Executive Officer proposed by RNTB after passing the review at OCC. Soto has recently served as Executive Vice President and Chief Financial Officer at Coastal Financial Corporation. Prior to that, he held positions as Chief Financial Officer at Square Financial Services and Inc. Square Financial Services is an industrial bank chartered in Utah by Block; he assisted in preparing and advancing the bank's charter application for approval by FDIC and the Utah Department of Financial Institutions, and was responsible for finance, capital, and fund management. Even earlier, he served as Chief Financial Officer and Chief Administrator at Green Dot Bank.
Soto indicates: "The first task of a trust bank is very simple: to know what you hold, to know for whom you hold it, and to ensure its safety. I have been dealing with bank auditors for twenty years, and the best response is always 'This is the result of the reconciliation.' This is precisely the discipline we need to embed from the very first day in the proposed national trust bank. Clear ownership, daily reconciliations, strict control, and an appropriate level of capital."
What will happen next?
This application must be reviewed and approved by OCC, which includes a public comment period. The public portion of the application will be available on the website OCC at occ.gov. The management of Rain and the initiators of RNTB are aware of the responsibilities associated with applying for a national trust bank license and will cooperate closely with OCC throughout the process.
Rain cooperates with Paul Hastings when preparing the application.
Frequently Asked Questions
Question: What is Rain National Trust Bank?
Answer: Rain National Trust Bank ( RNTB ) is a proposed national trust bank. Rain has submitted an application to the Federal Reserve Bank of New York ( OCC ) to establish this institution. If approved, RNTB will become a separately funded subsidiary of Rain, with its headquarters located in New York. It will be supervised and inspected by OCC and will be limited to the business of uninsured trust banks, including: fiduciary custody of digital assets and US dollars, management of reserves for authorized stablecoin issuers, and issuance and redemption of dollar-backed stablecoins for institutional customers. RNTB has not yet been approved and will only begin operations after obtaining all necessary OCC approvals.Question: Will Rain become a bank?
Answer: Rain is applying to establish an independent, limited-purpose trust bank subsidiary. Rain itself will still remain a stablecoin payment platform, and it will continue to be a primary member of Visa and Mastercard; this will not change. Rain National Trust Bank will be a separately funded subsidiary of Rain with a limited purpose: to act as a trustee to hold customer assets, manage stablecoin reserves, and to issue and redeem stablecoins, all under the supervision of OCC. Rain National Trust Bank will be an uninsured trust bank that will not accept deposits nor issue commercial loans.Question: Will there be FDIC insurance for Rain National Trust Bank?
Answer: No. Rain National Trust Bank will not accept deposits, nor will it obtain FDIC insurance. The assets held by customers through RNTB will be managed as custodial assets for the identified owners and will be separate from the assets of RNTB itself, and not considered liabilities of RNTB.Question: What does Rain National Trust Bank do?
Answer: If approved, Rain National Trust Bank will operate three business lines for institutional clients. Custody: Act as a trustee to securely hold the approved digital assets and fiat assets. Reserve Management: According to GENIUS Act, manage the reserves on behalf of authorized stablecoin issuers. Issuance and Redemption: Act as a registered issuer of US dollar-backed stablecoins.Question: Who is Rain National Trust Bank proposed to be the President and Chief Executive Officer?
Answer: Brandon Soto is the person proposed to serve as President and Chief Executive Officer of Rain National Trust Bank. He most recently held the position of Executive Vice President and Chief Financial Officer at Coastal Financial Corporation, and prior to that, he served as Chief Financial Officer at Square Financial Services and Inc. Square Financial Services is an industrial bank chartered in Utah by Block; he assisted in preparing the bank's charter application and was responsible for finance, capital, and capital management. Even earlier, he served as Chief Financial Officer and Chief Executive Officer at Green Dot Bank. He is a certified public accountant.Question: Will this change the card business or cooperation relationship of Rain?
Answer: No. The card, wallet, and fund transfer services of Rain will continue to operate in the current manner, and Rain will also continue to cooperate with existing partners. Rain National Trust Bank is a multi-year plan; if approved, it will add a federally regulated option for custody, reserve management, as well as the issuance and redemption of stablecoins, in addition to the infrastructure currently used by Rain and its partners today.Question: When will OCC decide on the application from Rain National Trust Bank?
Answer: The review of OCC follows its own process and timeline, which includes a period for public comment solicitation. The publicly available parts of the application will be posted on the OCC website in the coming days. Rain National Trust Bank will only begin operations after obtaining all necessary approvals.About Rain
Rain is a global stablecoin payment platform aimed at enterprises, new banks, platforms, developers, and AI agents. Its technology enables partners to quickly and compliantly transfer, store, and use stablecoins through global payment cards, reward programs, fiat currency deposit and withdrawal channels, stablecoin and fiat wallets, as well as cross-border channels. As a primary member of Visa and Mastercard, the cards issued by Rain can be used at over 175 million merchant locations in more than 200 countries and regions. Rain is built natively for stablecoins and is trusted by over 100 institutions worldwide, providing a secure and scalable infrastructure that allows funds to flow freely and instantly on a global scale. For more information, visit https:// www.rain.xyz.
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