Block Inc. Seeks Federal Charter to Launch Bitcoin Custody Bank
Jack Dorsey's Block has applied to the OCC for a national trust bank charter to provide regulated digital asset fiduciary services.
Block Inc. has applied to the Office of the Comptroller of the Currency (OCC) to establish a national trust bank dedicated to digital asset custody. The move marks a significant expansion of the company's regulated financial infrastructure.
According to a Business Wire press release and Bloomberg reports published on September 8, 2026, the proposed entity will be named "Builders Bank & Trust, N.A." The application specifies that Builders Bank is intended to operate as an uninsured national trust bank. Its primary purpose is to provide custody and related fiduciary services for Bitcoin, stablecoins, and other digital assets. Notably, the bank will not engage in traditional banking activities, such as issuing loans or taking deposits.
The Shift to Regulated Custody
Block, led by CEO Jack Dorsey, has long positioned itself as a Bitcoin-centric company. To date, this commitment has manifested through the integration of Bitcoin trading into the Cash App and the development of Bitkey, a tool designed to promote self-custody. By seeking a federal charter, Block aims to move beyond these consumer-facing tools into the realm of institutional-grade infrastructure. A national trust bank charter from the OCC allows a company to provide regulated custody services across state lines without the need to secure individual licenses in every state where it operates.
Industry Implications
This strategic pivot signals that Block is preparing to compete directly with both traditional financial institutions and crypto-native custodians. While Bitkey emphasizes the "not your keys, not your coins" philosophy of self-custody, Builders Bank & Trust would provide a regulated alternative for users and institutions that prefer professional fiduciary management. This dual approach allows Block to capture two different market segments: the sovereign individual and the regulated institutional investor, effectively expanding its financial ecosystem.
What to Watch
The application is now subject to the OCC's approval process. Observers will be watching for the regulator's decision, as the OCC has had a fluctuating relationship with crypto-custody charters in recent years. It remains to be seen how Block will integrate Builders Bank & Trust with its existing suite of products, or if the bank will operate as a standalone service for institutional clients.