Block applies for OCC national trust bank charter to custody bitcoin and settle stablecoins
Block, the payments company led by Jack Dorsey, applied to the Office of the Comptroller of the Currency to establish Builders Bank & Trust, an uninsured national trust bank in Sioux Falls. The bank would custody bitcoin and stablecoins, execute trades, and provide settlement services, consolidating Block’s digital asset operations under a single federal charter. Block processed $10.7 billion in bitcoin volume in 2025. The application is subject to OCC approval.
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Common ground
- Both agree that consumer perception is a real problem—people will see 'national trust bank' and assume government protection for crypto holdings.
- Both acknowledge that the current 50-state money transmitter license system is flawed and inconsistent.
- Both agree that the OCC's track record on crypto oversight is mixed, as shown by the Paxos case where state regulators had to step in.
- Both recognize that Block's application has been pending since September 2023, indicating the OCC is not rubber-stamping approvals.
Points of contention
- Neutral argues an OCC charter adds federal oversight and capital requirements, while Western claims it creates a false sense of security and preempts stronger state protections.
- Neutral says the FTX comparison is invalid because FTX wasn't an OCC-regulated trust bank, while Western insists the structural risk of custody failures is the same.
- Neutral believes a single federal charter improves oversight by giving one regulator full visibility, while Western argues it centralizes power and makes regulatory capture easier.
- Neutral frames the choice as 'regulated custody vs. unregulated custody,' while Western calls this a false binary and demands Congress pass new legislation first.
Blind spots
- Neither side fully addresses how Block's massive user base of 60 million Cash App users could amplify risks if custody failures occur.
- Both overlook the possibility that the OCC could impose stricter conditions on Block's charter than on previous applicants, setting a new precedent.
- The debate ignores the international dimension—how an OCC charter might affect Block's operations in other countries or global crypto regulation.
WorldAttention’s read
The core disagreement is whether an OCC trust charter for Block's crypto custody operations would improve consumer protection or just create a false sense of security. Neutral argues it's the best available option—adding federal oversight, capital requirements, and regular exams to a system currently governed by outdated state money transmitter laws. Western counters that the charter would preempt stronger state protections, legitimize risky custody practices, and repeat the failures seen with FTX and other regulated entities. Both agree consumer perception is a major risk and that the OCC's track record is mixed. The blind spots include the unique risks from Block's massive user base, the potential for stricter OCC conditions, and international implications. Ultimately, the debate hinges on whether you see the charter as a pragmatic step forward or a dangerous shortcut that bypasses needed congressional action.
Reporting timeline
Jack Dorsey's Block Seeks US Trust Bank Charter for Bitcoin and Stablecoins
Jack Dorsey's financial technology company, Block, is reportedly seeking a US trust bank charter to facilitate its operations involving Bitcoin and stablecoins. This move would allow Block to offer custodial and other banking services for digital assets under a regulated framework. The application, if approved, would mark a significant step in integrating cryptocurrency services within the traditional US banking system. Block, formerly known as Square, has been a prominent advocate for Bitcoin and blockchain technology. The charter would enable the company to hold customer funds and digital assets directly, potentially expanding its role in the crypto economy. The news was shared via a post on X, highlighting Block's ongoing efforts to bridge digital currencies with regulated financial infrastructure.
Jack Dorsey's Block applies to OCC to launch Builders Bank, a national trust bank for crypto
On September 8, 2026, Block, Inc., the financial services company led by Jack Dorsey, announced it has applied to the U.S. Office of the Comptroller of the Currency (OCC) to establish a national trust bank called Builders Bank & Trust, N.A. The proposed bank would provide custody and fiduciary services for Bitcoin and stablecoins but would not accept deposits or make loans, making it an uninsured bank. Block currently operates digital asset services under over 50 state licenses and facilitated approximately $10.7 billion in annual Bitcoin transaction volume in fiscal year 2025. The application outlines a three-year de novo period under heightened regulatory oversight. Block's Bitcoin-integrated products include Cash App, Bitkey hardware wallet, Proto mining system, and Square point-of-sale. Following the announcement, Block's stock slipped over 2% to $78.20.
Read sourceBlock seeks national trust charter to offer crypto custody services
Block, the payments fintech led by CEO Jack Dorsey, announced on September 9, 2026, that it has applied to the Office of the Comptroller of the Currency (OCC) for a national trust bank charter to offer custody services for bitcoin and stablecoins. The proposed entity, Builders Bank and Trust, would be an uninsured national trust bank that does not accept deposits or make loans. This charter would be separate from Block's existing ILC charter for Square Financial Services. The move comes as fintechs increasingly seek direct federal regulatory relationships rather than relying on sponsor banks. Keybanc Capital Markets analysts noted that Block already self-custodies bitcoin, so the charter primarily offers federal preemption for scaling operations. While Dorsey has historically favored bitcoin over stablecoins, the application includes both digital assets. The OCC has not yet posted the application for public comment. The charter would provide optionality for stablecoin settlement and other digital asset activities, though Block has not signaled plans for tokenized deposits.
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Block applies to establish Builders Bank for Bitcoin and digital asset custody
Jack Dorsey's Block, the financial technology company formerly known as Square, announced that it has applied to establish Builders Bank, an uninsured national trust bank. The proposed bank would provide the company with a federal regulatory framework for the custody of Bitcoin, stablecoins, and other digital assets. This move represents a significant step in Block's strategy to integrate cryptocurrency services within a regulated banking structure. The application, if approved, would allow Block to offer custody services for digital assets under a national trust bank charter, potentially expanding its capabilities in the crypto space. The announcement was made via Block's official social media channels, highlighting the company's continued focus on Bitcoin and blockchain technology as core components of its business model.
Read sourceBlock Applies to Establish Builders Bank & Trust, a Federally Regulated Trust Bank
Financial technology company Block has submitted an application to the Office of the Comptroller of the Currency (OCC) to establish a federally regulated, uninsured national trust bank called Builders Bank & Trust. The proposed bank would provide custody and fiduciary services, including for stablecoins and bitcoin, but would not accept deposits or make loans. Block stated that the new charter would establish a federal supervisory framework for certain custody and related activities it currently offers, and would help the company scale. The bank would be led by Lee Woolley, currently Block's digital asset strategy lead, as president and CEO. This move comes as several other fintech and payment companies, including PayPal, Sezzle, Ripple, and Circle Internet Group, are also pursuing banking charters or have received regulatory approvals. Circle received full OCC approval for a crypto-focused bank in July 2026. Block's application is subject to OCC approval.
Block applies for second bank charter to hold bitcoin and settle stablecoins
Block, the payments company led by Jack Dorsey, has applied for a second bank charter, this one for stablecoins. The new entity, Builders Bank & Trust, will hold bitcoin, execute trades, and settle stablecoins under supervision by the Office of the Comptroller of the Currency (OCC). It will be uninsured and based in Sioux Falls. Day-one activities include custody of bitcoin and other digital assets, buy/sell execution as riskless principal, deposits and transfers of digital assets, and stablecoin settlement services. This move consolidates Block's digital asset operations, which currently operate under more than 50 state money transmitter licenses, into a single federal charter. Cash App, which launched USDC in May, processed $10.7 billion in bitcoin volume in 2025 for approximately 2 million monthly active users. The charter provides Block with a qualified custodian, a federally supervised settlement entity for stablecoins, and a clean insured bank structure separating lending and custody risk. Block is the first consumer app with 60 million users to file for an OCC trust charter, joining crypto-native firms like Anchorage, Circle, and Coinbase.
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