Block Applies for National Trust Bank Charter to Bring Crypto Custody Under Federal Oversight

On September 8, 2026, Block, Inc. formally submitted an application to the Office of the Comptroller of the Currency to charter a new financial institution: Builders Bank & Trust, N.A. The proposed entity is structured as an uninsured national trust bank, designed specifically to bring the company's digital asset custody operations under direct federal supervision. If approved, the bank will operate with $0 in Federal Deposit Insurance Corporation backing, as it will not accept retail deposits or issue commercial loans.[1]

Instead, Builders Bank will be 100% focused on providing institutional-grade fiduciary custody and safekeeping for digital assets, explicitly naming bitcoin and stablecoins in its filing. The move represents a structural shift for the payments company led by Jack Dorsey, transitioning its existing crypto operations from a fragmented state-by-state regulatory model into a unified national framework.[1][3]

The application arrives as financial technology companies increasingly seek to own their regulatory relationships directly rather than relying on third-party sponsor banks. On the exact same day Block announced its OCC filing, digital banking platform Chime revealed a $590 million agreement to acquire its longtime partner, Stride Bank. For Block, securing a federal trust charter would provide the preemption necessary to scale its custody business nationally without navigating 50 separate state licensing regimes.[2][3]

"Block already self-custodies bitcoin in most cases, so the charter is likely primarily about federal preemption supporting better scale with growth at the federal regulatory level versus a state-level patchwork," analysts at KeyBanc Capital Markets noted following the filing. The analysts added that Block's digital asset focus remains heavily weighted toward bitcoin, with stablecoins adopted primarily in response to customer demand.[2]

The proposed trust bank would operate separately from Block's existing banking subsidiary, Square Financial Services. That entity, based in Salt Lake City, received an industrial loan company charter from Utah regulators in 2020 and handles the company's traditional merchant lending and payment processing services. By establishing Builders Bank as a distinct, non-deposit-taking trust, Block aims to isolate its digital asset custody functions from its broader consumer and commercial finance operations.[2][3]

To lead the new venture, Block has named Lee Woolley as the prospective president and chief executive officer of Builders Bank. Woolley currently serves as Block's digital asset strategy lead and brings more than 20 years of traditional banking experience to the role. His previous positions include serving as president and CEO of the Treasury Department Federal Credit Union, alongside senior leadership roles at Northern Trust and BNY Mellon.[1]

"Building on Block's experience in the digital asset space, our history with Square Financial Services, and the deep banking expertise of the team we've assembled, we believe Builders Bank is well positioned to support Block's broader vision of economic empowerment," Woolley stated in the company's announcement.[1]

Block is joining a growing queue of cryptocurrency and financial technology firms pursuing national trust charters from the OCC. The regulatory pathway was initially pioneered in 2021 when Anchorage Digital received the first conditional approval for a federal crypto bank charter. Since then, firms including Circle, BitGo, and Paxos have navigated similar OCC applications to legitimize their custody and stablecoin operations under federal oversight.[3][4]

The application now enters a standard OCC review process, which includes a mandatory 30-day public comment period. Regulators will evaluate Builders Bank's proposed capital adequacy, risk management protocols, internal controls, and governance structure. Block has emphasized that the filing is merely step 1, and Builders Bank will not commence any operations until it receives all required regulatory clearances.[1][4]