Rain, a firm that builds infrastructure for stablecoin transactions, filed an application on Monday to create a national trust bank in New York, according to a statement from the company. The proposed Rain National Trust Bank would be authorized to hold digital assets and U.S. dollars in a fiduciary capacity for institutional clients, manage reserves for stablecoin issuers that meet regulatory standards, and issue or redeem dollar‑backed stablecoins under the terms of the GENIUS Act. The application was submitted to the Office of the Comptroller of the Currency (OCC).

Brandon Soto, who previously served as chief financial officer of Square Financial Services, is slated to lead the new bank as president and chief executive officer, pending OCC approval. Rain chief executive and co‑founder Farooq Malik said the move responds to demand from institutional partners for a regulated custodial structure that can safeguard the assets underpinning their programs.

The filing adds Rain to a growing list of crypto and payments firms seeking national trust bank charters. Also on Monday, payments‑technology company Modern Treasury disclosed that it had submitted a similar application to the OCC to provide digital‑asset custody and related fiat services.

The initiative has encountered resistance from community banks. On Friday, the Independent Community Bankers of America (ICBA) filed a lawsuit in the U.S. District Court for the District of Columbia alleging that the OCC exceeded its statutory authority by permitting non‑depository trust banks to engage in extensive activities that are not strictly fiduciary in nature. The complaint targets the OCC’s March 2026 chartering rule and an interpretive letter issued in 2021, arguing that they allow entities involved in high‑risk cryptocurrency activities to enter the banking system under lightly regulated national charters, thereby creating an uneven playing field.

According to the ICBA, the framework grants crypto trust banks a competitive edge over traditional community banks, which must meet more rigorous regulatory standards. The group also warned that the “national bank” label could mislead consumers into believing that their deposits are federally insured, even though such assurance does not automatically apply to trust‑bank structures. The lawsuit seeks to overturn the OCC’s rule and interpretive letter and to halt further charter approvals that rely on them.

In response, the Crypto Council for Innovation characterized the legal challenge as an attempt to impede innovation within the sector. The ICBA’s complaint notes that at least 21 trust banks have received OCC approval or conditional approval, with roughly 13 of those being crypto‑focused entities.

The development underscores the broader tension between emerging digital‑asset firms and established financial institutions as the regulatory landscape continues to evolve.