Block has applied to the Office of the Comptroller of the Currency (OCC) to establish Builders Bank & Trust, an uninsured national trust bank that would place some of the company’s Bitcoin, stablecoin and digital-asset custody operations under direct federal supervision.
The proposed institution would not accept deposits or issue loans. Instead, it would provide custody and fiduciary services for assets including Bitcoin and stablecoins.
Block said the application was submitted on Tuesday and that Builders Bank & Trust, N.A. would operate as a national trust bank if it receives the necessary regulatory approvals.
The filing does not authorise the bank to begin operating. Block said Builders Bank would only launch once it had secured approval from the OCC and completed the requirements needed to open under federal supervision.
If approved, the bank would give Block a national regulatory framework for certain custody-related services the payments company already provides. It would operate under OCC oversight as an uninsured, non-deposit-taking institution.
Proposed bank would focus on digital-asset custody
Builders Bank would differ from a conventional commercial bank because it would not take customer deposits or provide traditional lending services. Its proposed role would centre on safeguarding digital assets and carrying out related fiduciary activities.
National trust banks can allow digital-asset companies to conduct approved custody and trust operations under federal supervision without becoming retail banks. Such institutions can also provide services including digital-asset custody and stablecoin reserve management while remaining outside the traditional deposit-taking model.
Block said the federal charter would create consistent oversight for certain custody and related operations as those activities expand. Bitcoin and stablecoins were specifically named among the assets that Builders Bank could hold in custody.
Block’s Digital Asset Strategy Lead, Woolley, said the company planned to work with the OCC on a charter intended to support secure asset custody for Block and its customers.
Woolley has more than 20 years of experience in banking and financial services. Before joining Block, he was president and chief executive of Treasury Department Federal Credit Union and held senior banking positions at Northern Trust and BNY Mellon.
Block already operates within the US banking system through Square Financial Services, an industrial bank that began operating in 2021. Builders Bank would be a separate federally supervised entity dedicated to trust and custody activities.
More crypto firms seek federal charters
Block’s application comes as cryptocurrency and fintech companies increasingly seek to bring digital-asset businesses under federal banking supervision.
OCC Comptroller Jonathan Gould said in August that companies carrying out legally permissible digital-asset activities should have access to the US national banking system.
At that point, the OCC had received 40 applications for new bank charters over an 18-month period, including applications for national trust banks. The regulator had 13 digital-asset licensing applications pending, with Payward, Revolut and World Liberty Financial among the companies seeking federal approval.
Revolut moved further through the process last week after receiving conditional OCC approval to establish Revolut Bank US, N.A. The proposed bank would be based in Stamford, Connecticut, and would receive about $95m in initial capital.
Revolut expects the bank to launch during the first half of 2027, but it still requires approval from the Federal Deposit Insurance Corporation and the Federal Reserve, as well as final authorisation from the OCC. Its planned services include checking accounts, cards, instalment loans, foreign exchange products and a stablecoin.
The OCC has made greater use of national trust charters for digital-asset businesses since late 2025. Ripple, Circle, Paxos, BitGo and Fidelity Digital Assets received conditional approvals in December 2025, followed by other applicants during 2026.
Conditional approval is an intermediate stage in the charter process. Applicants generally have to satisfy requirements involving capital, governance, compliance systems, organisational arrangements and operational readiness before they can open.
Circle has progressed beyond that stage after receiving final OCC approval in July to establish Circle National Trust. The federally supervised trust bank can provide digital-asset custody services to Circle, its affiliates and a limited number of institutional customers.
Kraken parent Payward is pursuing a similar model. Its proposed Payward National Trust Company would offer federally regulated digital-asset custody to institutional customers without taking deposits or issuing conventional loans.
Applications face scrutiny
Some companies have continued to pursue national trust charters despite lengthy regulatory reviews.
Zerohash submitted a second application in August after the OCC returned its original filing. The revised proposal contains a narrower range of trust activities, and the regulator opened a public comment period lasting until 17 September.
After reviewing an application and public submissions, the OCC can request more information, impose conditions, approve the filing or reject it. Zerohash’s revised application had not been approved or rejected when the filing was reported in late August.
World Liberty Financial, the crypto venture backed by President Donald Trump’s family, received preliminary conditional approval on 14 August to establish World Liberty Trust Company, National Association.
The proposed bank would issue and redeem the USD1 stablecoin, manage its reserves and provide digital-asset custody services. Before it could begin operating, World Liberty would have to meet the OCC’s conditions, including holding at least $20m in eligible capital.
The application and subsequent approval have attracted political scrutiny because of the Trump family’s links to the company. A Trump family-affiliated entity reportedly owns 38% of WLTC Holdings, which is behind the proposed bank. A group backed by Sheikh Tahnoon bin Zayed Al Nahyan of Abu Dhabi and co-investors reportedly controls a 49% stake.
World Liberty’s conditional approval followed questions from lawmakers about possible conflicts of interest involving the company and its dealings with the administration.
Senator Elizabeth Warren has also questioned the OCC’s authority to grant national trust charters to digital-asset firms. She argued earlier this year that some of the activities approved could go beyond the limits set by the National Bank Act.
Traditional banking organisations have raised separate concerns. The Bank Policy Institute retained external legal counsel while considering a possible challenge to the OCC’s approach after the regulator issued a series of conditional approvals to crypto companies. No lawsuit had been filed when the potential challenge was reported in July.
Block’s application remains under OCC review. Builders Bank will not begin operating unless the regulator approves the charter and the proposed institution fulfils all requirements for opening under federal supervision.
