BaaS & sponsor bank news
News on BaaS and sponsor banks: regulator orders, charters, bank deals and program launches.
Modern Treasury applies for a national trust bank charter
Modern Treasury files with the OCC for a limited-purpose trust bank to custody stablecoins and fiat. Rain files too.
Modulr picks Cogent Bank for U.S. payments launch
Modulr will open U.S. accounts and payouts through Cogent Bank, reaching ACH, RTP and FedNow via FIS.
Third-party risk management guidance: regulators issue proposal
The agencies would also retire the July 2024 bank-fintech joint statement. Comments are due November 16.
FDIC deposit insurance approval for Mercury Bank, N.A.
The FDIC cleared Mercury Bank, N.A. for deposit insurance with $300 million of initial paid-in capital.
Chime Stride Bank acquisition: Chime buys its sponsor bank for $590M
The all-cash deal would turn Chime's partner bank into Chime Bank, N.A., subject to OCC and Fed approval.
OCC grants conditional charters to Revolut and OpenReserve
Revolut serves U.S. customers through partner banks today; OpenReserve plans a banking-as-a-service platform.
OCC and FDIC finalize "unsafe or unsound practice" rule
The rule, effective November 2, ties enforcement to material financial harm. The Federal Reserve is not a party.
FDIC approves deposit insurance for Augustus National Bank
The FDIC approved deposit insurance for Augustus National Bank, a Dallas de novo with a stablecoin plan.
FDIC publishes a second consent order for Lineage Bank
Lineage Bank's second FDIC consent order sets capital floors and restricts dividends and brokered deposits.
Each item links the regulator record or company announcement it rests on: enforcement orders and their terminations, new bank charters and deposit insurance approvals, fintechs buying their sponsor banks, and the interagency guidance on what supervisors expect from bank-fintech partnerships. Payments companies applying for their own OCC trust charters are covered too, such as the modern treasury national trust bank application filed the same day as Rain’s. Enforcement orders are also logged in the sponsor bank enforcement actions tracker, and each bank has a profile in the sponsor bank directory. Background sits in the BaaS guides, starting with what is banking as a service.