Block Seeks U.S. Bank Charter for Bitcoin, Stablecoin Custody

Block has applied to establish a federally regulated U.S. trust bank focused on digital-asset custody, joining a growing group of cryptocurrency companies seeking to bring their businesses under federal banking supervision.

The company said September 8 that it submitted an application to the Office of the Comptroller of the Currency (OCC) to establish Builders Bank & Trust, N.A., an uninsured national trust bank.

If approved, the proposed bank would provide custody and fiduciary services for digital assets, including Bitcoin and stablecoins. It would not accept deposits or make loans, distinguishing it from a conventional commercial bank.

Block said the charter would provide a federal regulatory framework for custody and related activities that it already offers as the company expands its digital-asset business.

Builders Bank would be led by Lee Woolley, Block’s Digital Asset Strategy Lead, who would serve as president and CEO if the application receives regulatory approval.

A different kind of bank

Builders Bank would not compete with traditional banks for deposits or lending customers. Instead, the proposed institution would focus on custody and fiduciary services, reflecting the growing role of digital assets in institutional financial infrastructure.

A national trust bank can hold and administer assets for customers without operating as a conventional deposit-taking bank. That distinction is particularly relevant to cryptocurrency, where secure custody has become a core requirement for institutional investors and financial firms.

The OCC said that, as of September 30, 2025, OCC-supervised uninsured national trust banks collectively had $6.8 trillion in assets under administration, including $1.6 trillion in custody and safekeeping accounts.

For Block, a national trust-bank charter would provide a federal regulatory framework for an activity that is becoming increasingly institutionalized.

The proposed bank would also build on Block’s existing experience in banking. The company operates Square Financial Services, a Utah-chartered industrial bank that provides banking services for Square sellers. Block has pointed to that banking experience, alongside its digital-asset operations, as part of the foundation for Builders Bank.

Crypto firms move into banking

Block's application comes amid a broader push by cryptocurrency companies to obtain federal banking or trust-bank charters.

In December 2025, the OCC conditionally approved national trust-bank applications from Ripple, BitGo, Fidelity Digital Assets and Paxos, among others. The approvals included digital-asset custody activities. The OCC subsequently approved Coinbase National Trust Company in April 2026.

The trend extends beyond companies seeking to offer crypto services. OCC Comptroller Jonathan Gould said in August that the agency had received 40 applications for new bank charters over roughly 18 months, with 23 involving some form of digital-asset activity.

That puts Block's application within a much broader shift in the U.S. financial sector.

From crypto alternative to regulated infrastructure

The move is notable because cryptocurrency was initially positioned as an alternative to the traditional banking system. Major crypto and fintech companies are now increasingly seeking to operate inside the regulated financial system.

For Block, a national trust-bank charter would allow it to place digital-asset custody under federal supervision while avoiding the deposit-taking and lending activities of a conventional bank.

The development is also significant for stablecoins. As dollar-backed tokens become increasingly integrated into financial markets, regulated custody and fiduciary infrastructure around those assets is becoming more important to institutional participants.

Block's application does not mean Builders Bank has been approved. The OCC must review the proposal before the institution can begin operating.

If approved, however, Builders Bank would add another major financial company to the growing list of institutions building federally regulated infrastructure around digital assets — further narrowing the gap between crypto and traditional banking.