Hassan Maishera
TL;DR
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Block has applied to the Office of the Comptroller of the Currency to establish Builders Bank & Trust.
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The proposed entity would operate as an uninsured national trust bank.
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If approved, it would provide custody and fiduciary services involving bitcoin, stablecoins, and other assets.
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A national charter could place certain Block activities under a consistent federal regulatory framework.
Jack Dorsey-founded payments company Block has applied to establish a federally regulated national trust bank capable of providing cryptocurrency custody and other fiduciary services.
Block said Tuesday that it had submitted an application to the Office of the Comptroller of the Currency to create Builders Bank & Trust, N.A.
The proposed entity would operate as an uninsured national trust bank. Unlike a conventional commercial bank, it would focus on custody and fiduciary activities rather than offering federally insured retail deposits.
If approved, Builders Bank would provide services involving traditional and digital assets, including bitcoin and stablecoins.
Builders Bank Would Provide Digital Asset Custody
Block said a federal charter would allow Builders Bank to offer custody and other fiduciary services under the supervision of the OCC.
The charter could also establish a national regulatory framework for some custody-related activities that Block already provides through other parts of its business.
Operating under one federal structure could reduce the complexity associated with navigating different state-level licensing and regulatory requirements. It may also make Block’s services more attractive to institutions that require regulated custodians for digital assets.
Bitcoin custody involves safeguarding the private keys controlling the cryptocurrency. Stablecoin custody can introduce additional considerations involving reserves, issuers, and transaction monitoring.
Builders Bank would need to demonstrate that its systems can manage these risks while meeting federal standards covering governance, compliance and operational resilience.
Lee Woolley would serve as president and CEO of Builders Bank if the OCC approves the application.
Woolley said the proposed bank would draw on Block’s experience in digital assets, its work with Square Financial Services and the banking expertise of the team assembled for the project.
Block launched Square Financial Services as an industrial bank to provide business loans and deposit products to sellers using its Square ecosystem.
Builders Bank would extend the company’s regulated financial operations into trust and digital-asset services. The proposed institution also supports Block’s broader goal of expanding access to financial tools and economic participation.
The application represents only the beginning of the regulatory process. The OCC will assess factors including the proposed bank’s management, business plan, capitalization, risk controls and compliance systems before deciding whether to grant approval.
Crypto Firms Pursue Federal Bank Charters
Block joins a growing number of fintech and cryptocurrency companies seeking national bank or trust bank charters.
Revolut recently received conditional approval after applications involving companies such as Coinbase, Paxos, BitGo, Ripple, and Circle.
The trend reflects a more receptive stance toward digital-asset businesses at the OCC. Federal charters can give crypto companies a clearer path to offering custody and payment services nationally while operating under direct federal oversight.
However, conditional approval does not immediately authorize a company to begin full operations. Applicants must typically satisfy additional capital, compliance, governance, and technical requirements before receiving final permission to launch.
A national trust bank charter also does not provide unrestricted authority to conduct every form of banking activity. Its permitted services depend on the charter, business plan, and conditions imposed by regulators.
OCC Approves World Liberty Financial Application
The OCC recently granted conditional approval to a national trust bank backed by President Donald Trump’s family-linked World Liberty Financial.
That decision has faced scrutiny in Washington over potential conflicts of interest involving the president’s family and the federal agency responsible for approving and supervising the proposed institution.
The approval nevertheless demonstrates the OCC’s willingness to consider banking applications from companies operating primarily within the digital-asset industry.
Since 2025, the regulator has received 40 applications for new bank charters. It approved 21 and denied two during that period, with the remainder either pending or otherwise unresolved.
Block already has substantial exposure to Bitcoin through Cash App and other parts of its business.
A national trust bank could deepen that involvement by providing federally supervised custody infrastructure for individuals, companies, and institutions. It could also place Block in direct competition with regulated crypto custodians and traditional financial institutions entering the digital-asset market.
The uninsured structure means Builders Bank would not rely on conventional federally insured consumer deposits. Its business would instead center on holding assets and performing fiduciary duties on behalf of customers.
Approval is not guaranteed, and Block has not provided a timeline for the OCC’s decision. If authorized, however, Builders Bank could give the company a broader role in connecting conventional financial regulation with bitcoin and stablecoin services.
