Jack Dorsey’s Block Seeks US Bank Charter for Bitcoin and Stablecoin Custody

Block is applying to the Office of the Comptroller of the Currency to form Builders Bank & Trust, N.A., an uninsured national trust bank under its jurisdiction that would focus on digital asset custody and fiduciary services.

Approval would bring parts of Block’s bitcoin, stablecoin and other digital asset-related businesses under direct federal oversight. It would not be a traditional commercial bank. According to Block, Builders Bank would not take in customer deposits or make loans to customers.

Instead, its mandate would be custody and other fiduciary functions for assets like Bitcoin and stablecoins, using its national charter to provide regulatory uniformity as those services expanded.

Submission of an application does not authorize the bank to open, as Builders Bank cannot open for business until the proposal has been through the OCC’s review process, the OCC has issued its approval, and the bank has met any organizational requirements, as well as any conditions imposed, e.g., governance, capital, compliance, operational readiness.