Jack Dorsey's Block company applies to OCC for Bitcoin and stablecoin custodian bank status

Block applies to establish an uninsured National Trust Bank and bring part of its digital asset custody business into federal supervision.

Block has submitted an application to the Office of the Comptroller of the Currency (OCC) to establish Builders Bank & Trust. The agency plans to operate as an uninsured national trust bank, specializing in providing custody and trusteeship services for bitcoin and stablecoins, and will not take deposits or issue loans.

If approved, Builders Bank will operate under the direct supervision of the OCC, establishing a unified federal regulatory framework for certain Block's existing custody activities. The move makes Block one of several cryptocurrency and fintech companies seeking a U.S. federal banking license, reflecting the trend that the OCC is reviewing more digital asset-related applications.

Non-traditional banking model focusing on digital asset custody

Unlike traditional commercial banks, Builders Bank will not accept customer deposits or issue loans. Block describes the entity in the plan as an "uninsured, non-deposit-taking national trust bank" whose core business focuses on custody and trusteeship services. This national trust structure allows digital asset companies to conduct approved custody and trust activities under federal supervision without having to operate as a traditional retail bank.

As previously reported, cryptocurrency trust banks can provide services such as digital asset custody and stablecoin reserve management while remaining outside the traditional deposit model. Block said the federal license will provide consistent regulatory standards for specific custody and related activities after the expansion. Among them, Bitcoin and stablecoins are clearly listed as asset classes that can be managed by Builders Bank.

Lee Woolley will become President and CEO of Builders Bank. He said: "Relying on Block's experience in digital assets, Square Financial Services 'historical heritage, and the deep banking expertise of our team, we believe that Builders Bank can well support Block's broader vision of economic empowerment."

OCC opens path to accelerate applications for federal banking licenses in the crypto industry

Block This application comes at a time of surge in applications from cryptocurrency and fintech companies seeking to include digital asset businesses in federal banking regulation. In August, OCC Commissioner Jonathan Gould stated that digital asset companies engaged in legal compliance activities should have access to the U.S. national banking system. At the time, it was reported that the OCC had received 40 applications for new banking licenses within 18 months, including applications from National Trust Bank.

As of then, regulators had 13 pending digital asset license applications, including companies such as Payward, Revolut and World Liberty Financial. Last week, Revolut further went through the approval process after receiving conditional approval to establish Revolut Bank US, N.A. The fintech company plans to locate the proposed bank in Stanford, Connecticut, and inject approximately $95 million in initial capital. Revolut expects the bank to launch in the first half of 2027, but still needs to obtain final approval from the Federal Deposit Insurance Corporation (FDIC) and the Federal Reserve. Services it plans to provide include checking accounts, bank cards, installment loans, foreign exchange products and stablecoins.

Since the end of 2025, the OCC has more widely issued national trust licenses to digital asset companies. Companies such as Ripple, Circle, Paxos, BitGo and Fidelity Digital Assets received conditional approvals in December 2025, and other applicants will subsequently follow up in 2026.

Conditional approval is an intermediate stage in the licensing process. Applicants typically must complete organizational requirements and meet conditions involving capital, governance, compliance systems and operational readiness to obtain authorization to start business. Circle has now moved beyond this stage and received final approval from the OCC in July this year to establish Circle National Trust. This is a federally regulated trust bank that provides digital asset custody services to Circle, its affiliates and limited institutional customers.

Kraken's parent company Payward has taken a similar approach. Its proposed Payward National Trust Company would provide federally regulated digital asset custody services to institutional customers without taking deposits or making traditional loans.

Crypto companies continue to apply for national trust licenses despite facing scrutiny

Applications continue despite some companies facing longer regulatory review periods. Zerohash filed a second National Trust Bank application in August this year after the OCC returned its original documents. The revised application proposes a narrower scope of trust activities, and regulators have opened a public comment period until September 17. After receiving the application and public comment, the OCC may request additional information, impose conditions, approve the application, or refuse it. When Zerohash's revision request was reported at the end of August, no notice of approval or rejection had been received.

World Liberty Financial, a cryptocurrency venture capital project backed by President Donald Trump's family, received preliminary conditional approval on August 14 to establish the World Liberty Trust Company, the National Association. The proposed agency will be responsible for issuing and redemption of USD1 stablecoins, managing their reserves and providing digital asset custody services. World Liberty must meet OCC conditions before the bank begins operations, including maintaining at least $20 million in qualified capital.

Because of the Trump family's connections to the company, its application and subsequent approval triggered political scrutiny. According to reports, Trump family affiliated entities hold a 38% stake in the proposed bank holding company WLTC Holdings, while a group backed by Abu Dhabi Sheikh Tahnoon bin Zayed Al Nahyan and co-investors holds a 49% stake. World Liberty's conditional approval was obtained after lawmakers questioned the company and its potential conflicts of interest in government-regulated transactions.

The review of cryptocurrency trust licenses is not limited to World Liberty. Earlier this year, Senator Elizabeth Warren questioned the OCC's power to grant national trust licenses to digital asset companies, arguing that certain permitted activities may exceed limits set out in the National Banking Act. Traditional banking groups also raised separate objections. The Banking Policy Institute hired outside legal counsel to consider possible legal challenges to the OCC's approach, which came after regulators issued a series of conditional approvals to cryptocurrency companies. When the potential challenge was reported in July, no lawsuit had been filed.

Block's application is still under review by the OCC. Builders Bank will not start operations until regulators approve the proposed license and the agency completes the requirements needed to open business under federal supervision.