Block Seeks to Establish National Trust Bank for Crypto Custody
Jack Dorsey's financial services company, Block, Inc., has taken a significant step in its mission to provide economic empowerment by applying to the Office of the Comptroller of the Currency (OCC) to launch a national trust bank. The proposed bank, called Builders Bank & Trust, N.A., would offer custody and related fiduciary services, including for Bitcoin and stablecoins. This move marks a major development in the company's efforts to expand its digital asset offerings and provide secure custody solutions for its customers.
Background and Context
Block has a long history of integrating Bitcoin into its products, including Cash App, a wallet that allows Bitcoin investing, and Square, a point-of-sale system with Bitcoin payments. The company has also operated regulated digital asset services for approximately eight years and currently conducts its digital assets business under more than 50 state money transmitter licenses and virtual currency licenses. In fiscal year 2025, Block facilitated approximately $10.7 billion in annual Bitcoin transaction volume through its digital asset offerings.
As of Q2 2026, the company serves approximately two million digital-asset monthly transacting actives through Cash App. This significant user base and transaction volume demonstrate the growing demand for digital asset services and the need for secure custody solutions.
Key Features of the Proposed Bank
The proposed Builders Bank & Trust, N.A. would be an uninsured bank and would not accept deposits or make loans. The bank would offer custody of Bitcoin and other digital assets, execute customer buy, sell, deposit, withdraw, and transfer orders for digital assets, and stablecoin settlement and transfer services during the three-year de novo period. The de novo period refers to the initial three-year supervisory window during which newly chartered banks operate under heightened oversight by regulatory bodies.
Lee Woolley, who would serve as the bank's President and CEO, stated, "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." He added, "We look forward to working with the OCC as we pursue a charter designed to support the secure custody of assets for Block and its customers."
Significance and Implications
The proposed national trust bank would be a significant development in the crypto industry, providing a secure and regulated custody solution for digital assets. This move would also demonstrate Block's commitment to providing economic empowerment and expanding access to digital assets for its customers.
The establishment of a national trust bank would also have implications for the broader financial industry, as it would provide a new model for the provision of digital asset services. It remains to be seen how this development will impact the industry and whether other companies will follow suit.
What to Watch Next
The OCC will review Block's application and determine whether to grant a charter for the proposed bank. This process is expected to take several months, during which time the company will work closely with the OCC to address any concerns and provide additional information as needed.
Once the charter is granted, the proposed bank will begin operations and offer its services to customers. This will be a significant milestone for Block and the crypto industry as a whole, and it will be interesting to see how the company's digital asset offerings evolve in the coming months and years.
Market Reaction
Following the announcement, the Block stock slipped more than 2% to trade at $78.20 at the time of writing. This reaction is not surprising, given the significant implications of the proposed national trust bank for the company's business model and the broader financial industry.
However, it remains to be seen how the market will react in the long term, as the establishment of a national trust bank would provide a new and secure custody solution for digital assets, which could potentially drive growth and adoption of the company's digital asset offerings.