Block has submitted an application to the Office of the Comptroller of the Currency (OCC) for a US national trust bank charter as the fintech group looks to bring more of its digital asset custody activities under a federal regulatory framework.
If approved, the company plans to establish Builders Bank & Trust NA, an uninsured, non-deposit-taking national trust bank focused on custody and fiduciary services.
The proposed bank would provide services related to Bitcoin, stablecoins and other digital assets, while not accepting customer deposits or issuing loans.
Federal Framework for Digital Asset Custody
Block said the charter would create a federal supervisory structure for certain custody and related activities that are already part of its broader digital asset business.
The move would give the company a nationally regulated entity specifically designed to handle fiduciary and custody functions, rather than operate as a traditional commercial bank.
Builders Bank would therefore focus on safeguarding assets and providing related services to eligible clients without taking on deposit or lending activities.
The application comes as US regulators continue to define how banks, fintech companies and digital asset firms can provide custody services involving cryptocurrencies and stablecoins.
Lee Woolley to Lead the Proposed Bank
Block has named Lee Woolley, its Digital Asset Strategy Lead, as the planned President and Chief Executive Officer of Builders Bank.
Woolley brings extensive experience across banking, wealth management and financial services.
His previous roles include serving as President and CEO of Treasury Department Federal Credit Union, Regional President at BNY Wealth Management, and Managing Director of National Advisory Services at Northern Trust.
His appointment would place an executive with a traditional banking background at the head of Block’s proposed digital asset-focused trust institution.
Block Expands Its Digital Asset Strategy
Block, formerly known as Square, was founded in 2009 by Jack Dorsey and Jim McKelvey and has grown into a diversified financial technology group.
Its businesses include Square, which provides merchant payment and commerce services, and Cash App, its consumer payments platform.
The company has also made Bitcoin and blockchain technology an increasingly important part of its long-term strategy, developing infrastructure and products linked to the digital asset ecosystem.
The proposed launch of Builders Bank would represent another step in that strategy by placing certain custody services under direct federal supervision.
If the OCC approves the application, Block would gain a dedicated US national trust bank through which it could expand regulated custody and fiduciary services for Bitcoin and stablecoins while remaining outside the traditional deposit-taking and lending model.
