Block files with OCC to establish federally regulated trust bank Builders Bank & Trust

By: Elias Schisgall

Block, the financial technology company, announced on Tuesday that it has submitted an application to federal regulators to establish a federally regulated, uninsured national trust bank named Builders Bank & Trust.

The proposed bank charter "would establish a federal supervisory framework for certain custody and related activities currently offered by Block," the company stated. Builders Bank & Trust would provide custody and fiduciary services, including for stablecoins and bitcoin, but would not accept deposits or make loans.

Block said the establishment of the bank would help the company scale its operations. If approved, the bank would be led by Lee Woolley as president and chief executive officer.

"Building on Block's experience in the digital asset space, our history with Square Financial Services, and the deep banking expertise of the team we've assembled, we believe Builders Bank is well positioned to support Block's broader vision of economic empowerment," said Woolley, who currently serves as Block's digital asset strategy lead.

The application is subject to approval by the Office of the Comptroller of the Currency (OCC), a federal banking regulator.

Broader Industry Context

Block's move comes as a growing number of financial technology and payment companies pursue entry into the banking sector:

• PayPal filed an application in December to form an industrial loan company (ILC) that would offer business loans, savings, and accounts.
• Sezzle, a buy-now-pay-later company, expressed interest in forming an ILC last year but recently told investors it would seek a national bank charter instead.
• Cryptocurrency platforms have also entered the space. Firms such as Ripple and Circle Internet Group received conditional approval from the OCC to form national trust banks late last year.
• Circle received full OCC approval to establish a crypto-focused bank in July.

Write to Elias Schisgall at elias.schisgall@wsj.com

(END) Dow Jones Newswires September 08, 2026 18:37 ET (22:37 GMT)

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