Jack Dorsey’s payments company Block has taken a formal step toward regulated crypto custody, filing an application with the U.S. Office of the Comptroller of the Currency to charter a new national trust bank. The proposed entity, called Builders Bank & Trust, N.A., would give Block a federally supervised path to offer bitcoin stablecoin custody services, a move that signals how seriously fintech companies are now treating digital asset infrastructure as core banking business rather than a side experiment.
Key takeaways
- Block has applied to the U.S. Office of the Comptroller of the Currency to charter Builders Bank & Trust, N.A., an uninsured national trust bank.
- If approved, the bank would provide custody and fiduciary services for bitcoin and stablecoins under direct OCC supervision.
- Builders Bank would not take deposits or make loans, setting it apart from a traditional retail or commercial bank.
- Lee Woolley, Block’s Digital Asset Strategy Lead, is expected to serve as president and CEO if the charter is granted.
- The filing was reported on September 8, 2026, and reflects growing institutional interest in regulated digital asset custody.
Block’s Application to Establish Builders Bank & Trust
Block wants federal permission to run a bank built specifically around digital assets, not deposits or lending. The company submitted its charter request to the OCC, the federal agency that oversees national banks and trust companies, asking to create Builders Bank & Trust, N.A. as an uninsured national trust bank.
Overview of the National Trust Bank Charter Application
A national trust bank charter is a narrower designation than a full commercial banking license. It allows an institution to hold and manage assets on behalf of clients under federal oversight, without the deposit-taking and lending functions that come with a standard bank charter. By pursuing this specific structure, Block is signaling that its ambitions center on custody, not on becoming a conventional bank competing for checking accounts or mortgages.
Leadership and Organizational Structure
If regulators sign off, Lee Woolley is expected to take the helm as president and chief executive of Builders Bank. Woolley currently serves as Block’s Digital Asset Strategy Lead, a detail that ties the proposed bank directly to the company’s existing crypto operations rather than treating it as a standalone acquisition or spinoff. Placing an internal digital asset specialist at the top of the new entity suggests Block intends to keep tight strategic control over how the bank’s custody functions integrate with its broader product ecosystem.
Builders Bank’s Business Model and Services
The proposed bank’s business model is deliberately narrow: hold digital assets securely for clients and handle related fiduciary duties, nothing else. That focus is what separates Builders Bank from ordinary retail banking and puts it in a small but growing category of institutions built specifically for crypto custody.
Custody and Fiduciary Services for Bitcoin and Stablecoins
Under the application, Builders Bank would provide custody and related fiduciary services for assets that include bitcoin and stablecoins, operating under OCC supervision. That framing matters because it positions the bank as a regulated custodian for two of the most widely held categories of digital assets: a volatile, non-sovereign store of value in bitcoin, and dollar-pegged tokens increasingly used for payments and settlement. Offering both under one federally chartered roof would give institutional clients a single regulated venue for holding assets that currently sit across a patchwork of exchanges, self-custody wallets, and unregulated custodians.
Non-depository Bank Operations
Crucially, Builders Bank would not take deposits or make loans. That restriction keeps the institution out of the traditional banking activities that trigger deposit insurance requirements and lending risk, while still letting it operate under a federal charter. It’s a structure built for one purpose: safeguarding digital assets, not intermediating credit or funding traditional bank operations.
Regulatory Implications and Market Impact
Why this matters: a national trust charter focused on digital assets would put a major fintech’s custody operations directly under federal bank supervision, something most crypto custodians currently lack. That distinction could reshape how institutional clients evaluate where to park bitcoin and stablecoin holdings.
Supervision by the Office of the Comptroller of the Currency
The OCC’s oversight role is central to the entire filing. Rather than operating under state-level trust charters or unregulated custodial arrangements, Builders Bank would answer to a federal banking regulator with authority over national banks and trust companies. That supervisory layer is precisely what many institutional investors have been waiting for before committing larger allocations to digital asset custody providers.
Significance for US Digital Asset Custody Market
Block’s filing lands at a moment when institutional interest in crypto infrastructure keeps expanding, and a federally chartered custody bank dedicated to bitcoin and stablecoins would mark a meaningful step in that direction. Analysts covering the filing have noted that the move could reflect broader institutional appetite for regulated bitcoin custody solutions, since a major fintech pursuing an OCC charter — rather than relying on existing exchange-based custody — suggests confidence that federal supervision, not just private security standards, is becoming a baseline expectation for serious digital asset holders.
That shift carries competitive weight too. If Builders Bank secures its charter, it would join a limited group of federally regulated custodians positioned to serve institutions that need compliance certainty alongside bitcoin stablecoin custody. Rival fintechs and crypto-native custodians will likely watch the OCC’s response closely, since approval could set a template other companies pursue for their own national trust bank charters.
FAQ
What kind of charter has Block applied for?
Block has applied for a national trust bank charter with the U.S. Office of the Comptroller of the Currency.
What services will Builders Bank & Trust provide if approved?
The bank would provide custody and fiduciary services for bitcoin and stablecoins under OCC supervision.
Will Builders Bank accept deposits or make loans?
No. Builders Bank would not accept deposits or make loans, distinguishing it from traditional commercial banks.
Who is expected to lead Builders Bank & Trust?
Lee Woolley, Block’s Digital Asset Strategy Lead, is expected to serve as president and CEO if the application is approved.
Article produced with the assistance of artificial intelligence and reviewed by the editorial team.
Be the first to comment