Block, Founded by Jack Dorsey, Seeks National Bank Charter for Bitcoin Custody

Summary

• Block has filed an application with the OCC to create Builders Bank & Trust, aiming to provide custody for Bitcoin.
• This new bank will not take deposits or issue loans, focusing instead on stablecoin settlements.
• In 2025, Block managed around $10.7 billion in Bitcoin transactions and has over 50 state licenses.

Block, the parent company of Square and Cash App, announced its application for a national trust bank charter with the Office of the Comptroller of the Currency (OCC) on September 4. The proposed Builders Bank & Trust will center on custody services for Bitcoin and other digital assets, while avoiding traditional banking activities like deposit-taking and lending.

Block has been active in the digital asset sector for nearly eight years, operating under more than 50 state licenses. The company reported processing approximately $10.7 billion in Bitcoin transactions in 2025, serving around two million monthly users through Cash App. Block believes that securing a federal charter will enable it to enhance its operations under a unified national framework as it grows.

A Branchless Bank

Builders Bank is planned to be based in Sioux Falls, South Dakota, and will operate without physical branches. The bank's proposed board members live outside South Dakota, leading Block to request a waiver from the OCC regarding the requirement for local directors. Lee Woolley, who leads Block's digital asset strategy, is set to be the chair and CEO.

Interestingly, Jack Dorsey, co-founder of Block, is not involved in the management of this initiative. The financial specifics of the application remain confidential and are subject to OCC approval.

Despite Dorsey's previous skepticism about stablecoins, the bank's proposal includes services related to them. The OCC has previously granted conditional approvals for several crypto trust charters, but recent denials, such as that of Wise National Trust, indicate that approval is not assured. In April, the OCC updated its chartering rules, impacting Block's application, and has faced scrutiny from some lawmakers about its authority to issue trust charters to non-traditional fiduciaries.