Block seeks federal trust charter to custody Bitcoin and stablecoins

Block submitted an application to the Office of the Comptroller of the Currency (OCC) on September 8, 2026, to establish Builders Bank & Trust, N.A. The move signals a strategic push to integrate digital asset custody into a formal federal regulatory framework.

The proposed entity, Builders Bank & Trust, would operate as an uninsured national trust bank. According to application details, the bank's primary purpose is to provide fiduciary and custody services specifically for stablecoins and Bitcoin. Unlike a traditional commercial bank, Builders Bank & Trust would not issue loans or accept deposits from customers.

Lee Woolley, Block's digital asset strategy lead, has been designated as the president and CEO of the new venture. "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," Woolley stated.

The push for federal oversight

This application follows Block's 2021 launch of Square Financial Services, an industrial bank. The current move toward a national trust charter reflects a broader industry trend where fintech and cryptocurrency firms—including Paxos, Ripple, and Circle—are seeking federal oversight. These companies aim to legitimize their custody services and reduce the regulatory uncertainty that often accompanies digital asset management.

However, the trend has not been without opposition. Some lawmakers, including Senator Elizabeth Warren, have raised concerns regarding whether these types of charters exceed the legal authority granted by the National Bank Act.

Strategic implications

By securing a federal trust charter, Block can scale its digital asset operations under a single, consistent national framework. This allows the company to avoid the complexities of navigating a fragmented patchwork of individual state laws, which often vary significantly in their treatment of digital assets.

Furthermore, the move is an attempt to mitigate the legal and operational risks associated with unregulated crypto custody. By operating under the OCC, Block aims to provide a more secure and transparent environment for its customers' assets while deepening the integration of Bitcoin and stablecoins into its existing financial ecosystem.

What remains

Block now awaits a decision from the OCC on the application. While the company has expressed a desire to work closely with the regulator to ensure secure asset custody, the final approval will depend on the OCC's current appetite for digital-asset-focused charters. Observers will be watching to see if the regulator maintains its support for these specialized entities or if political pressure from lawmakers leads to a tightening of the chartering process.