Block, the fintech company led by Jack Dorsey, has applied for a national trust charter to provide custody services for bitcoin and stablecoins. The move signals a broader trend among fintechs to pursue direct federal regulation rather than relying on sponsor banks.
Charter Application Details
After market close on Tuesday, Block announced it submitted an application to the Office of the Comptroller of the Currency (OCC) to establish a national trust bank named Builders Bank and Trust. This charter would operate separately from Block’s existing industrial loan company (ILC) charter, which supports Square Financial Services.
Pending regulatory approval, Builders Bank and Trust would offer custody and related fiduciary services for digital assets, including bitcoin and stablecoins. The company stated that Builders would be an uninsured national trust bank and would not accept deposits or make loans.
Strategic Rationale
Block’s application comes amid a wave of fintechs and financial firms seeking OCC trust charters focused on digital asset management. The same day, Chime announced plans to acquire one of its sponsor banks, highlighting the industry shift toward owning banking relationships directly.
KeyBanc Capital Markets (KBCM) analysts noted that Block already self-custodies bitcoin in most cases, so the charter likely aims for federal preemption to support scale and growth at the federal level rather than navigating a patchwork of state regulations. They added that Block stands out among digital asset trust applicants due to its mass-consumer app and distribution through its Square merchant base.
Digital Asset Focus
Jack Dorsey has long been a vocal supporter of bitcoin, while expressing a more cautious view on stablecoins. However, Block has integrated both bitcoin and stablecoins into its products, and the proposed trust bank would include both in its business plan.
The company did not indicate plans for tokenized deposits, even as other digital asset firms explore this use case. KBCM analysts framed tokenized asset custody as a longer-term option, noting that Block has not signaled tokenization plans and its stated focus remains bitcoin, with stablecoins adopted more reluctantly based on customer demand.
Leadership and Next Steps
Lee Woolley, who currently serves as Block’s digital asset strategy lead, would become president and CEO of Builders Bank. Woolley previously held senior banking roles at Northern Trust and BNY Mellon, and served as president and CEO of Treasury Department Federal Credit Union.
In a statement, Woolley expressed confidence in the bank’s ability to support Block’s vision of economic empowerment, citing the company’s experience in digital assets and its history with Square Financial Services. The application is subject to OCC review and approval, with the agency aiming to process charter applications within 120 days.