A twelfth crypto company wants to become a bank that cannot take deposits. That is the point.
đ§ In plain words
Per CoinDesk, stablecoin payments firm Rain applied to the OCC for a national trust bank charter. Rain National Trust Bank would hold digital assets and dollars for clients, manage stablecoin reserves and issue and redeem dollar tokens for institutions, but would not take deposits, make loans or carry FDIC insurance. Think of a vault with a federal licence rather than a bank branch: it keeps and moves money for others and never lends it. Circle received final approval for the same kind of charter in July, per CoinDesk.
â What it means for you
âą Stablecoins you hold, including $USDC, increasingly sit on reserves inside federally supervised entities rather than at partner banks.
âą A trust charter means direct access to parts of the payment system without a third-party bank that could cut the firm off.
âą Community banks are fighting it: the ICBA has sued the OCC, arguing it cannot charter firms that do not offer traditional banking.
Takeaway: the charter rush is the industry trying to stop depending on banks that can say no.
#Stablecoins #Regulation
đ§ In plain words
Per CoinDesk, stablecoin payments firm Rain applied to the OCC for a national trust bank charter. Rain National Trust Bank would hold digital assets and dollars for clients, manage stablecoin reserves and issue and redeem dollar tokens for institutions, but would not take deposits, make loans or carry FDIC insurance. Think of a vault with a federal licence rather than a bank branch: it keeps and moves money for others and never lends it. Circle received final approval for the same kind of charter in July, per CoinDesk.
â What it means for you
âą Stablecoins you hold, including $USDC, increasingly sit on reserves inside federally supervised entities rather than at partner banks.
âą A trust charter means direct access to parts of the payment system without a third-party bank that could cut the firm off.
âą Community banks are fighting it: the ICBA has sued the OCC, arguing it cannot charter firms that do not offer traditional banking.
Takeaway: the charter rush is the industry trying to stop depending on banks that can say no.
#Stablecoins #Regulation