Block crypto custody bank seeks OCC approval to launch Builders Bank

Jack Dorsey’s payments company is making its boldest regulatory move yet in digital assets. Block has filed an application with the Office of the Comptroller of the Currency to launch a new Block crypto custody bank called Builders Bank & Trust, N.A., a specialized institution designed to hold Bitcoin and stablecoins for clients under direct federal oversight rather than state-by-state rules.

Key takeaways

• Block has applied to the OCC to open Builders Bank & Trust, N.A., a proposed national trust bank.
• The bank would focus exclusively on custody and fiduciary services for digital assets like Bitcoin and stablecoins.
• Builders Bank would not accept customer deposits, make loans, or offer FDIC insured accounts.
• Lee Woolley, Block’s head of digital assets strategy, is expected to serve as president and CEO if the application is approved.
• No timeline has been given for the OCC’s decision, and Block joins Ripple, Circle, BitGo, Payward and Zerohash in pursuing similar national charters.

Block Files to Create Builders Bank Under OCC Supervision

Block has formally asked federal regulators for permission to launch a bank built specifically around digital asset custody services. The company confirmed it submitted its Builders Bank OCC application to the Office of the Comptroller of the Currency, seeking approval to operate as an uninsured national trust bank.

If the OCC signs off, Builders Bank would function under a national trust bank charter, giving Block one consistent federal standard to follow instead of navigating separate rules in every state where it operates. That single regulatory framework is central to the pitch: as Block’s digital asset business grows, a national charter would let custody operations scale without getting tangled in a patchwork of local requirements.

The OCC has not indicated when it will rule on the request. Regulators will need to determine whether Builders Bank meets the standards required for a national trust bank charter, and Block has offered no public estimate of how long that review might take.

Builders Bank’s Focus on Digital Asset Custody and Fiduciary Services

Builders Bank is designed to do one thing well: safeguard digital assets on behalf of clients, not act as a general-purpose lender or deposit-taking institution. The proposed charter would let it hold Bitcoin and stablecoins for firms and individuals who want a federally supervised place to store crypto holdings.

Scope of Services and Charter Limitations

The bank’s activities would be tightly restricted to custody, fiduciary duties, and other trust-related services permitted under its charter. That narrow scope separates Builders Bank from a conventional commercial bank offering checking accounts, mortgages, or business loans. Everything about the design points toward a single purpose: acting as a regulated custodian for crypto assets rather than a full-service lender.

Non-Depository Status and Impact

Because Builders Bank would be a non-depository, uninsured institution, it would not accept customer deposits or offer FDIC insured accounts, and it would not make loans. That structure matters for anyone weighing where to park crypto holdings: clients using Builders Bank would be relying on fiduciary custody protections tied to the trust charter, not the deposit insurance that backs a traditional savings or checking account. It’s a trade-off that mirrors how other crypto-focused trust banks have positioned themselves — regulated, but built around custody rather than banking in the conventional sense.

Leadership and Block’s Experience Supporting Builders Bank

Lee Woolley, who currently leads Block’s digital assets strategy, is expected to take the helm as president and CEO of Builders Bank if regulators grant approval. Woolley brings more than two decades of banking and financial services experience to the role, and Block has pointed to that background as a fit for the bank’s fiduciary mandate.

Woolley has said the new institution would draw on Block’s existing digital asset operations along with its experience running Square Financial Services, the company’s industrial bank. That combination, he argued, gives Builders Bank a solid operational foundation — Block isn’t starting from zero on banking compliance, since Square Financial Services has already exposed the company to federal oversight and regulatory reporting requirements.

Implications for Block and the US Crypto Custody Landscape

Block’s push for a dedicated Block crypto custody bank lands amid a broader wave of fintech and crypto firms seeking the same kind of federal charter. Ripple has already secured conditional approval for a comparable national trust bank charter, while Circle and BitGo have received final approval for theirs. Kraken parent Payward and crypto infrastructure provider Zerohash have also filed similar applications, signaling that national trust charters are becoming a standard playbook for companies that want to offer regulated custody without becoming full commercial banks.

Why does this matter beyond Block? A national charter effectively lets these companies operate as coast-to-coast custodians under one regulator, sidestepping the slower, fragmented process of seeking licenses state by state. For institutional clients and larger crypto holders, that uniformity can make a custodian more attractive, since compliance expectations stay consistent no matter where the client is based. For Block specifically, approval would slot neatly into its larger strategy around Bitcoin and stablecoins, giving the company a federally supervised vehicle to expand custody offerings tied to its existing digital asset business.

The competitive angle is hard to ignore. With Ripple, Circle, BitGo, Payward and Zerohash all pursuing or holding similar charters, the OCC is emerging as a key gatekeeper shaping which crypto companies get to offer bank-grade custody in the United States. Block’s application puts it squarely in that race, though its fate — like the others still pending — rests entirely on how quickly and how favorably the OCC decides to move.

FAQ

What is the purpose of Builders Bank?

Builders Bank focuses exclusively on custody and fiduciary services for digital assets such as Bitcoin and stablecoins, rather than traditional banking.

Will Builders Bank accept customer deposits or offer FDIC insurance?

No, Builders Bank would not accept customer deposits or offer FDIC insured accounts, since it is proposed as a non-depository institution.

Under which regulatory framework would Builders Bank operate?

Builders Bank would operate under a national trust bank charter supervised by the Office of the Comptroller of the Currency, giving it one federal regulatory framework instead of separate state rules.

Who is expected to lead Builders Bank?

Lee Woolley, Block’s head of digital assets strategy, is expected to serve as president and CEO of Builders Bank if the OCC approves the application.

Article produced with the assistance of artificial intelligence and reviewed by the editorial team.