Block Inc. Applies for National Trust Bank Charter to Custody Bitcoin and Stablecoins

This application signals a significant shift towards federal oversight of digital asset custody, potentially enhancing security and trust in the cryptocurrency market.

• On September 8, 2026, Block Inc. submitted an application to the OCC for a national trust bank charter.
• The proposed Builders Bank & Trust will focus exclusively on custody services for Bitcoin and stablecoins, without accepting deposits or making loans.
• Lee Woolley, a seasoned executive in digital asset strategy, is set to lead the new bank if approved.

• Fintech firms are increasingly seeking federal charters to unify regulatory oversight, moving away from fragmented state-level licenses.
• Block has processed $10.7 billion in Bitcoin transactions in 2025, showcasing its significant role in the digital asset space.
• The OCC is receiving similar applications from other firms, indicating a growing trend towards institutional adoption of digital asset custody.

On September 8, 2026, Block Inc., co-founded by Jack Dorsey, took a pivotal step by applying for a federal national trust bank charter with the OCC. The proposed Builders Bank & Trust, N.A., aims to provide custody and fiduciary services specifically for Bitcoin and stablecoins. This move is not just a regulatory formality; it represents a strategic consolidation of Block's operations, which currently span over 50 state licenses. By seeking a federal charter, Block aims to streamline its compliance processes and enhance its operational efficiency under a single regulatory framework.

The proposed bank will not engage in traditional banking activities such as accepting deposits or making loans. Instead, it will focus solely on digital asset custody, a service that is becoming increasingly vital as institutional interest in cryptocurrencies grows. The leadership of Lee Woolley, who has extensive experience in digital asset strategy from his previous roles at Northern Trust and BNY Mellon, suggests that the bank will be well-positioned to navigate the complexities of this emerging market.

This application aligns with broader industry trends where fintech and cryptocurrency firms are pursuing federal trust charters to gain uniform regulatory oversight. The fragmented nature of state-level regulations has posed challenges for companies operating in multiple jurisdictions. By establishing a federally chartered bank, Block can provide a consistent and secure environment for digital asset custody, which is crucial for attracting institutional clients who prioritize regulatory compliance and security.

Market participants have reacted positively to this application, viewing it as a sign of growing institutional commitment to Bitcoin custody infrastructure. While no immediate governmental responses or market price shifts have been documented, the OCC's ongoing acceptance of similar applications indicates a robust interest in establishing a regulated framework for digital assets. As the application remains under review, the outcome will likely influence how other firms approach their own regulatory strategies in the cryptocurrency space.

• Institutional investors: They will benefit from enhanced security and regulatory clarity in digital asset custody.
• Fintech companies: Those seeking to enter the digital asset space may find it easier to navigate regulations.
• Consumers: Individuals using digital asset services may experience improved trust and security in their transactions.

• OCC's decision timeline: The approval or denial of Block's application will set a precedent for future fintech and crypto bank charters.
• Market response: Watch for shifts in Bitcoin and stablecoin prices as institutional interest evolves based on regulatory developments.
• Emerging competitors: Other fintech firms may accelerate their own applications for national trust charters, impacting the competitive landscape.