Block, the fintech company founded by Jack Dorsey and Jim McKelvey, has formally applied for regulatory approval to establish Builders Bank & Trust, N.A., a new national trust bank focused on digital assets. The application, submitted to the Office of the Comptroller of the Currency (OCC), seeks a federal charter that would allow Block to provide custodial and fiduciary services for cryptocurrencies such as Bitcoin and stablecoins.
National trust bank charter proposal
If approved, Builders Bank & Trust would operate as an uninsured, non-bank institution. The bank will not accept customer deposits or offer FDIC-insured accounts, differentiating it from traditional commercial banks. Instead, it will concentrate on safeguarding digital assets and providing fiduciary services to clients requiring regulated cryptocurrency custody solutions.
By pursuing a national charter, Block aims to establish a consistent federal regulatory framework for its digital asset services. This approach would allow the company to bypass the patchwork of state-by-state regulations and position itself under the oversight of the OCC, the primary regulator for national banks in the United States.
Builders Bank would not accept customer deposits or provide FDIC-insured accounts, focusing solely on custody and fiduciary services for Bitcoin and stablecoins under a federal charter.
Experienced leadership and strategic direction
Block confirmed that Lee Woolley, head of digital assets strategy at the company, is expected to lead Builders Bank if regulatory approval is granted. Woolley brings over 20 years of experience in banking and financial services. Block believes his background in both conventional finance and digital assets will help shape products that meet the demands of cryptocurrency clients.
Woolley emphasized that Block’s experience with digital assets and Square Financial Services, combined with the company’s established banking expertise, gives the new venture a strong foundation to deliver expanded services. He noted that Builders Bank will advance Block’s broader vision in the digital asset sector.
Mini dictionary: Lee Woolley, head of digital assets strategy at Block, has extensive experience in both banking and digital assets, positioning him to lead the company’s digital asset expansion.
Digital asset focus and regulatory oversight
Builders Bank is designed to expand Block’s involvement in the growing industry for custodial services related to cryptocurrencies. By providing a federally regulated environment, it aims to meet the needs of clients who require institutional-grade custody solutions for Bitcoin and stablecoins. This initiative is seen as a way to leverage Block’s prior experience with regulated financial services through Square Financial Services.
The establishment of a national trust bank would also enable Block to enhance its digital asset offerings while remaining compliant with federal standards. Development of services for both Bitcoin and stablecoins reflects an understanding of the increasing demand for regulated custody in the broader digital asset market. Stablecoins have attracted attention from financial institutions as blockchain technology introduces new possibilities for payments and settlements.
Next steps and industry implications
The OCC is now responsible for reviewing Block’s application. Approval would allow Builders Bank & Trust to function as a key element within Block’s wider digital asset strategy, providing federal regulatory oversight while focusing on custody, fiduciary, and related trust activities. The proposed institution would remain distinct from regular banks due to its lack of deposit-taking and deposit insurance.
| Feature | Traditional Bank | Builders Bank & Trust |
|---|---|---|
| Charter type | Commercial Bank | National Trust Bank |
| Deposits accepted | Yes (FDIC-insured) | No |
| Primary function | Lending, deposits, payments | Custody, fiduciary services |
| Regulatory body | OCC/FDIC | OCC |
| Digital asset focus | Limited | Bitcoin, stablecoins |
The decision to approve or deny the national trust bank charter rests solely with the OCC. If granted, the new entity will allow Block to further institutionalize its crypto offerings and align them with federal regulatory standards. The move represents a broader shift for fintech firms seeking to integrate digital asset services within the regulatory perimeter of the US banking system.
