- Block has now applied to the OCC to establish Builders Bank and Trust.
- Builders Bank would not take deposits or issue loans, unlike a normal bank.
- Circle has already received similar OCC approval for Circle National Trust.
Block has applied to the Office of the Comptroller of the Currency to create Builders Bank & Trust, N.A., an uninsured national trust bank that would custody bitcoin, stablecoins, and other digital assets on behalf of Block’s customers under direct federal supervision.
What Block Is Actually Proposing
Builders Bank would not take deposits or issue loans. Its sole function would be custody and related fiduciary services, essentially safeguarding digital assets under OCC oversight rather than operating as a traditional bank. If approved, the charter would pull a portion of Block’s existing crypto custody operations into one federally regulated entity, rather than the company managing that activity across multiple state frameworks.
Lee Woolley, who would lead Builders Bank as President and CEO, pointed to Block’s track record with Square Financial Services and the team’s banking background as reasons the company feels positioned to pursue this. Woolley previously held senior roles at Northern Trust and BNY Mellon.
Why This Matters: State Licenses vs. Federal Oversight
Right now, fintech and crypto companies operating nationwide typically need to secure money transmitter licenses in each state where they do business, which can mean managing up to 50 separate licenses, each with its own fees and compliance requirements.
A national trust charter replaces that patchwork with a single federal standard, which can lower compliance costs and speed up how quickly new services can launch across the country.
Part of a Broader Industry Shift
Block isn’t alone in pursuing this path. Circle has already received OCC approval to establish Circle National Trust, and Fidelity Digital Assets operates under a similar federally supervised model. Circle described its own approval as “a defining step in bringing blockchain technology and digital assets into the core of the U.S. financial system.” If Block’s application succeeds, it would put the company in more direct competition with these established players for institutional custody business.
What It Could Mean for Institutional Bitcoin Adoption
A federal bank charter carries weight for large institutions specifically because it automatically satisfies strict “qualified custodian” requirements many funds and corporate treasuries need before they can hold digital assets directly. That status can reduce the counterparty risk concerns that have historically kept some institutional money on the sidelines, while letting institutions manage custody through banking relationships they already trust rather than relying solely on crypto-native exchanges.
The application remains under OCC review with no set timeline for a decision. Approval is not guaranteed, and if approved, its impact will depend on the final terms.
Related: Revolut Targets 2027 U.S. Bank Launch After OCC Approval
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