Jack Dorsey’s Block files OCC application for Bitcoin and stablecoin custody bank

Block has applied to establish an uninsured U.S. national trust bank that would place some of its Bitcoin, stablecoin and digital asset custody operations under direct federal supervision.
Summary

• Block has applied to the OCC to establish Builders Bank & Trust as an uninsured national trust bank.
• Builders Bank would provide custody and fiduciary services for Bitcoin and stablecoins without accepting deposits or making loans.
• The proposed bank would operate under OCC supervision and create a federal framework for certain custody activities already offered by Block.
• Block joins several crypto and fintech firms pursuing US federal bank charters as the OCC reviews more digital asset applications.

Block said on Tuesday that it submitted an application to the Office of the Comptroller of the Currency to form Builders Bank & Trust, N.A., a proposed national trust bank that would operate without taking deposits or making loans.

If approved, Builders Bank would provide custody and related fiduciary services for assets including Bitcoin and stablecoins. The proposed bank would operate under OCC supervision and give Block a national regulatory framework for certain custody activities that the payments company already offers.

The application does not allow Builders Bank to begin operations. Block said the proposed institution would only launch after securing the required regulatory approvals from the OCC.

"Building on Block's experience in the digital asset space, our history with Square Financial Services, and the deep banking expertise of the team we've assembled, we believe Builders Bank is well positioned to support Block's broader vision of economic empowerment," Lee Woolley, who would serve as president and CEO of Builders Bank, said.

Block trust bank would focus on Bitcoin and stablecoin custody

Unlike a traditional commercial bank, Builders Bank would not accept customer deposits or issue loans. Block described the planned entity as an uninsured, non-deposit-taking national trust bank focused on custody and fiduciary services.

A national trust structure can be used by digital asset companies to conduct approved custody and trust activities under federal supervision without operating as a conventional retail bank. As crypto.news previously reported, crypto trust banks can provide services such as digital asset custody and stablecoin reserve management while remaining outside the traditional deposit-taking model.

Block said a federal charter would establish consistent supervision for certain custody and related activities as those operations scale. Bitcoin and stablecoins were specifically identified among the assets Builders Bank could custody.

Woolley said the company plans to work with the OCC as it pursues a charter designed to support secure asset custody for Block and its customers.

Woolley currently serves as Block's Digital Asset Strategy Lead and has more than 20 years of experience in banking and financial services. Before joining Block, he served as president and CEO of Treasury Department Federal Credit Union and held senior banking positions at Northern Trust and BNY Mellon.

Block already has experience operating within the U.S. banking system through Square Financial Services, an industrial bank that began operations in 2021. Builders Bank would create a separate federally supervised structure focused on trust and custody activities.

OCC has opened a path for more crypto bank applications

Block is seeking the charter during a period of increased applications from cryptocurrency and fintech companies looking to bring digital asset businesses under federal banking supervision.
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Comptroller Jonathan Gould said in August that digital asset companies conducting legally permissible activities should have access to the U.S. national banking system. At the time, the OCC had received 40 de novo charter applications over an 18-month period, including applications for national trust banks, crypto.news reported in August.

The regulator had 13 pending digital asset licensing applications at that point, with companies including Payward, Revolut and World Liberty Financial among those pursuing federal approvals.

Revolut moved further through the process last week after receiving conditional OCC approval to establish Revolut Bank US, N.A. The fintech plans to base the proposed bank in Stamford, Connecticut, and inject roughly $95 million in initial capital.

Revolut expects the bank to launch in the first half of 2027, but the company still needs Federal Deposit Insurance Corporation and Federal Reserve clearances along with final OCC authorization. Its planned services include checking accounts, cards, installment loans, foreign exchange products and a stablecoin.

The OCC has used national trust charters more extensively with digital asset businesses since late 2025. Ripple, Circle, Paxos, BitGo and Fidelity Digital Assets received conditional approvals in December 2025, while other applicants followed during 2026.

Conditional approval represents an intermediate stage in the charter process. Applicants generally must complete organizational requirements and meet conditions involving areas such as capital, governance, compliance systems and operational readiness before receiving authorization to open.

Circle has since progressed beyond that stage. The stablecoin issuer received final OCC approval in July to establish Circle National Trust, a federally supervised trust bank that can provide digital asset custody services to Circle, its affiliates and a limited group of institutional customers.

Kraken parent Payward has taken a similar route. Its proposed Payward National Trust Company would provide federally regulated digital asset custody to institutional customers without accepting deposits or issuing conventional loans.

Crypto firms continue pursuing national trust charters

Applications have continued even as some companies face longer regulatory reviews.

Zerohash submitted a second national trust bank application in August after the OCC returned its original filing. The revised application proposes a narrower set of trust activities, with the regulator opening a public comment period through Sept. 17.

The OCC can request further information, impose conditions, approve an application or reject it after reviewing the filing and public comments. Zerohash's revised application had not received an approval or rejection when crypto.news reported on the filing in late August.

World Liberty Financial, the crypto venture backed by President Donald Trump's family, received preliminary conditional approval on Aug. 14 to establish World Liberty Trust Company, National Association.

The proposed institution would issue and redeem the USD1 stablecoin, manage its reserves and provide digital asset custody services. World Liberty must meet the OCC's conditions before the bank can begin operations, including maintaining at least $20 million in eligible capital.

The application and subsequent approval have drawn political scrutiny because of the Trump family's ties to the company. A Trump family-affiliated entity reportedly owns 38% of WLTC Holdings, the holding company behind the proposed bank, while a group backed by Sheikh Tahnoon bin Zayed Al Nahyan of Abu Dhabi and co-investors reportedly controls a 49% stake.

World Liberty's conditional approval came after lawmakers had questioned potential conflicts of interest surrounding the company and its regulatory dealings with the administration.

Scrutiny of crypto trust charters has extended beyond World Liberty. Sen. Elizabeth Warren questioned the OCC's authority earlier this year to grant national trust charters to digital asset companies, arguing that some approved activities could exceed limits under the National Bank Act.

Traditional banking groups have raised separate objections. The Bank Policy Institute retained outside counsel as it considered a possible legal challenge to the OCC's approach after the regulator issued a series of conditional approvals to crypto companies. No lawsuit had been filed when the potential challenge was reported in July.

Block's application remains subject to OCC review. Builders Bank will not begin operating unless the regulator approves the proposed charter and the institution completes the requirements needed to open under federal supervision.
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