Payments company Block submitted an application to the Office of the Comptroller of the Currency (OCC) on Tuesday to create Builders Bank & Trust. If approved, this uninsured national trust bank would operate under federal supervision to offer custody and fiduciary services for Bitcoin and stablecoins. The proposed institution is structured to avoid accepting deposits or making loans, distinguishing it from conventional commercial banks while providing a consistent national regulatory framework for Block’s expanding custody operations.
Lee Woolley, Block’s digital asset strategy lead, is slated to serve as president and CEO of the new entity. Woolley indicated that Builders Bank would leverage insights from Block’s existing Square Financial Services industrial bank. This move aligns Block with other major crypto firms pursuing similar charters, including Ripple, which received conditional approval, and Circle and BitGo, which have secured final approval. Kraken parent Payward and infrastructure provider Zerohash have also filed applications.
The establishment of a federally supervised trust bank represents a significant step toward integrating cryptocurrency custody into the traditional financial regulatory perimeter. By seeking an OCC charter, Block aims to standardize its compliance posture across state lines, addressing the fragmentation that often complicates institutional adoption of digital assets. This structure allows the firm to offer regulated fiduciary services without assuming the balance sheet risks associated with deposit-taking commercial banking.
From a Market Structure perspective, the convergence of fintech incumbents and crypto-native firms around national trust charters signals a maturing industry landscape. With peers like Circle and BitGo already holding final approvals, the competitive advantage may shift toward operational execution and integration capabilities rather than mere regulatory status. Stakeholders should monitor the OCC’s review timeline and any subsequent conditions imposed on Builders Bank, as these will define the practical boundaries of federally supervised crypto custody in the United States.
