Block applies for national trust charter to offer crypto custody services
Block has submitted an application to the Office of the Comptroller of the Currency (OCC) seeking a new national trust bank charter under the name Builders Bank and Trust. The proposed entity would provide institutional-grade custody and safekeeping for digital assets like bitcoin and stablecoins, operating separately from Block's existing Industrial Loan Company (ILC) charter used by Square Financial Services. The move aligns with broader trends in fintech where companies are increasingly seeking direct regulatory relationships rather than relying on sponsor banks. According to analysts at Keybanc Capital Markets, the new trust bank would likely leverage federal preemption for scalability and growth compared to state-level regulation. Block's CEO Jack Dorsey has long supported bitcoin but remains cautious about stablecoins; however, both asset types are included in Builders Bank’s custody plans. The application is still pending regulatory approval and hasn't been made public by the OCC yet. The trust bank will not accept deposits or make loans, focusing instead on digital asset custody and settlement.
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Topics: blockchain regulation crypto custody fintech OCC charter