Block Seeks Federal Charter for Bitcoin Custody Bank

Block, the payments company led by Jack Dorsey, has applied to establish an uninsured national trust bank in the United States. The proposed bank, Builders Bank & Trust, would provide custody and fiduciary services for Bitcoin and stablecoins without accepting deposits or making loans.

The OCC application marks a significant step towards creating a federal framework for certain custody activities offered by Block. According to Lee Woolley, who would serve as president and CEO of Builders Bank, the company plans to work with the OCC to pursue a charter that supports secure asset custody for Block and its customers.

Woolley has over 20 years of experience in banking and financial services, having previously served as president and CEO of Treasury Department Federal Credit Union and held senior positions at Northern Trust and BNY Mellon. Builders Bank would operate under OCC supervision and create a separate federally supervised structure focused on trust and custody activities.

The OCC has opened the path for more crypto bank applications, with Comptroller Jonathan Gould stating in August that digital asset companies conducting legally permissible activities should have access to the U.S. national banking system. Revolut moved further through the process last week after receiving conditional OCC approval to establish Revolut Bank US, N.A.