Rain and Modern Treasury Apply for OCC Trust Charters
Two financial technology firms, Rain and Modern Treasury, have submitted applications for national trust bank charters with the Office of the Comptroller of the Currency. This move places both companies among a growing number of digital asset and payment startups seeking direct federal oversight and regulatory integration.
The Push Toward Federal Regulation
The pursuit of national trust charters by Rain and Modern Treasury indicates a broader strategic shift within the financial technology sector. By seeking federal licensure from the OCC, these enterprises aim to streamline operations across state lines, reduce reliance on traditional partner banks, and establish a more formalized standing within the regulated banking ecosystem.
- Rain and Modern Treasury are the latest fintechs to pursue OCC trust charters.
- The applications follow recent legal challenges regarding federal trust authority.
- Firms seek direct oversight to enhance operational scale and compliance frameworks.
Industry Context and Legal Backdrop
The filing arrives shortly after a prominent trade association filed a lawsuit against the OCC concerning its authority to issue trust charters to non-depository institutions. Despite ongoing legal debates surrounding the scope of federal powers, digital asset and payment processors continue to evaluate national charters as a viable pathway for long-term stability and expansion.
Source: Banking Dive
