Dorsey's Block Seeks Federal Charter for Bitcoin Custody

Block, the fintech firm founded by Jack Dorsey, has applied to the Office of the Comptroller of the Currency (OCC) for a charter to establish an uninsured national trust bank called Builders Bank & Trust. The new entity would focus on digital asset custody and fiduciary services, with a mandate that does not include taking in customer deposits or making loans.

Builders Bank would provide custody services for Bitcoin and stablecoins under federal supervision. Block's Digital Asset Strategy Lead, Lee Woolley, is expected to serve as the bank's president and CEO.

The application comes as other crypto and fintech firms have sought national bank and trust charters from the OCC. However, it's worth noting that a federal charter would not convert Builders Bank into a retail depository institution or confer deposit insurance.