Jack Dorsey’s Block applies for national trust bank charter to custody Bitcoin and stablecoins
Jack Dorsey’s Block has submitted an application to the US Office of the Comptroller of the Currency (OCC) to establish a federally regulated trust bank named Builders Bank & Trust. The planned bank aims to offer custody services for Bitcoin and stablecoins under a consistent national regulatory framework, distinguishing itself by not accepting deposits or making loans, unlike conventional commercial banks.
Application for a National Trust Bank Charter
On Tuesday, Block announced it had submitted an application to the OCC to establish Builders Bank & Trust, an uninsured national trust bank. If approved, the bank would operate under OCC supervision focusing on custody and related fiduciary services, aiming to create a consistent national regulatory framework as its crypto custody business expands.
Block emphasized that the proposed bank would not accept deposits or make loans, differentiating it from traditional commercial banks and concentrating exclusively on custody services for Bitcoin and stablecoins.
Leadership and Industry Context
Lee Woolley, Block’s digital asset strategy lead, is appointed as president and CEO of Builders Bank & Trust. Woolley stated that the institution would leverage Block’s experience in digital asset operations and its existing industrial bank, Square Financial Services.
This move places Block among other fintech and crypto companies seeking national trust bank charters. Ripple has obtained conditional approval; Circle and BitGo have received final approval. Additionally, Payward, the parent company of Kraken, and crypto infrastructure provider Zerohash have also submitted applications for similar charters.
Why it matters
Establishing a national trust bank dedicated to digital asset custody reflects the growing need among fintech and crypto companies for a clear and consistent legal framework in the US. For Block, this charter would provide a stable, regulated foundation for storing Bitcoin and stablecoins, boosting client trust and enabling business expansion. Moreover, the move indicates increasing institutional interest in federally supported structures for crypto finance, signaling maturation in the sector.
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