Block Seeks OCC Approval for Crypto-Focused National Trust Bank

Jack Dorsey's Block has made a significant move to become a U.S. crypto bank, applying to the Office of the Comptroller of the Currency (OCC) to launch a national trust bank. This new institution, called Builders Bank, will focus strictly on Bitcoin custody and reject deposits and loans, unlike traditional banks.

The decision has sent shockwaves through the market, with investors immediately dumping Block's stock in response to skepticism about the venture's viability. Dorsey's vision for economic empowerment through this move is being met with criticism that Builders Bank is essentially a centralized trap for Bitcoin holders.

The OCC will review Block's application and decide whether to grant approval for the new bank. If successful, Builders Bank would become one of the first national trust banks in the U.S. focused on crypto custody.