Block Seeks OCC Charter for Uninsured Bitcoin Custody Bank

Block has applied to establish Builders Bank & Trust, N.A., an uninsured national trust bank under direct federal supervision. The proposed bank would provide custody and related fiduciary services for bitcoin and stablecoins.

The application remains at the stage of OCC review and approval. Block said it will not begin operating until it receives the required regulatory approvals. Builders Bank would operate without taking deposits or making loans, unlike a conventional deposit-taking lender.

Block's proposed bank is part of a larger trend in the fintech space, with other companies such as Circle seeking OCC charters for digital-asset custody banks. The Office of the Comptroller of the Currency has conditionally approved five national trust bank applications and listed 11 pending digital-asset licensing applications.

Block's application comes amidst opposition from the Bank Policy Institute, which represents large banks and has warned against using the charter as a lighter regulatory route for bank-like products. However, Block said it is subject to OCC review and approval, and Builders Bank would not commence operations unless and until it receives the required regulatory approvals.