Block has applied to the OCC to establish Builders Bank & Trust, N.A., an uninsured national trust bank for digital asset custody.
The filing marks a step in the US-based payments and financial technology company’s effort to bring its digital asset custody activities under a federal regulatory framework.
Scope and expectations of the proposed charter
If approved, Builders Bank would operate under OCC supervision as a federally regulated national trust bank, offering custody and related fiduciary services, including for Bitcoin and stablecoins. The bank would be uninsured and non-deposit-taking, meaning it would not accept deposits or make loans. According to Block, the charter is intended to formalise, under a consistent national framework, custody and related activities that the company already offers, allowing these operations to scale within a defined regulatory structure.
In a statement accompanying the announcement, Lee Woolley, Digital Asset Strategy Lead at Block, pointed to Block's experience in digital assets and its history with Square Financial Services as relevant background for the proposed bank.
The application remains subject to OCC review and approval, and Builders Bank would not begin operations until it receives the necessary regulatory clearances.
Industry context
The initiation follows a broader pattern of payments and fintech companies seeking federally chartered trust bank status to support digital asset custody activities, as firms look to align Bitcoin and stablecoin services with dedicated regulatory oversight rather than relying solely on state-level licensing or existing banking partnerships. Recently, in 2026, Revolut and OpenReserve have received conditional approval from the OCC to form US national banks.
For Block, whose portfolio includes Square, Cash App, Afterpay, TIDAL, Bitkey, and Proto, a national trust charter would create a distinct regulated entity for custody functions, separate from the company's other financial service lines.
The OCC's review process for national trust bank applications typically examines capital adequacy, governance, risk management, and the scope of proposed fiduciary activities.
