Block files OCC trust bank application for Bitcoin custody

Block Inc has submitted a charter application to the Office of the Comptroller of the Currency seeking to operate a federally regulated trust bank dedicated to digital asset custody, a move that would bring its bitcoin and stablecoin operations under direct federal oversight.

"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," said Lee Woolley, who would serve as president and chief executive of the proposed entity. Woolley currently leads digital asset strategy at Block and previously held senior banking roles at Northern Trust and BNY Mellon.

The proposed Builders Bank & Trust, N.A. would not accept deposits or make loans, distinguishing it from a commercial bank charter. Instead, it would operate strictly under OCC supervision, offering tailored trust and safeguard mechanisms for digital asset custody. The federal framework would replace the patchwork of state-level money transmitter licenses Block currently navigates as it scales its bitcoin and stablecoin operations across Square, Cash App, and its Bitkey self-custody wallet.

The filing places Block among a growing cohort of crypto firms pursuing OCC trust charters. Ripple and Circle Internet Group received conditional approval from the OCC to form national trust banks late last year, and Circle secured full approval in July to establish a crypto-focused bank. PayPal has also moved toward banking, filing in December to form an industrial loan company, while buy-now-pay-later firm Sezzle recently said it would pursue a national bank charter instead.

For Block, the charter would extend the institutional infrastructure it has been building since launching Square Financial Services, its existing industrial bank. The company's broader Bitcoin strategy under CEO Jack Dorsey spans mining hardware through its Proto division, the Bitkey self-custody wallet, and treasury holdings. A federal trust charter would give those operations a regulated custody backbone that could serve both internal needs and external institutional clients seeking qualified custodians for digital assets.

The OCC's review timeline has not been disclosed. Builders Bank would not commence operations until the agency grants formal approval. Market reaction to the filing was muted in extended trading, with Block shares holding flat on the NYSE following the announcement.

The application arrives as demand for regulated digital asset custody grows among institutional investors, who increasingly require federally supervised custodians to hold bitcoin and other crypto assets. If approved, Builders Bank would give Block a direct federal regulatory relationship for its custody business, a structural advantage over competitors operating through state-level frameworks. The outcome of the OCC review will also serve as a barometer for how the agency approaches crypto banking under the current administration.

This article is for informational purposes only and does not constitute investment advice.