Jack Dorsey’s Block seeks US trust bank charter for Bitcoin, stablecoin

Jack Dorsey’s payments company Block seeks to establish a federally regulated trust bank to provide custody services for Bitcoin and stablecoins.

Block said Tuesday it had submitted an application to the Office of the Comptroller of the Currency (OCC) to create Builders Bank & Trust, an uninsured national trust bank. If approved, the bank would operate under OCC supervision and offer custody and related fiduciary services. 

Block said the charter would give its custody operations a consistent national framework as the business expands. The proposed bank would not accept deposits or make loans, separating it from a conventional commercial bank.

Lee Woolley, Block’s digital asset strategy lead, would serve as Builders Bank’s president and CEO. Woolley said the proposed institution would draw on Block’s digital asset operations and its experience with Square Financial Services, the company’s existing industrial bank. 

Block joins other financial technology and crypto companies pursuing national trust bank charters. Ripple has received conditional approval for a similar charter, while Circle and BitGo have received final approval. Kraken parent Payward and crypto infrastructure provider Zerohash have also submitted applications.

Related: Dorsey shares AI-integrated workplace vision weeks after Block’s 40% staff cut