Block applies for National Trust Bank license to hold Bitcoin and stablecoins

Block applied for a federal trust bank license to hold bitcoin and stablecoins.

Block, a payments company founded by Jack Dorsey, wants federal regulators to allow it to hold bitcoin and stablecoins through licensed trust banks. On Tuesday, the company said it had submitted an application to the Office of the Comptroller of the Currency (OCC) to establish Builders Bank Trust,., This is an uninsured and non-deposit-taking national trust bank.

If approved, Builders Bank will have the ability to provide custody and trust services for Bitcoin and stablecoins, and some of Block's existing digital asset activities will also be included under a single federal regulatory framework. Block's digital asset experience combined with Square Financial Services will place Builders Bank in a strong position "to support Block's broader vision of economic empowerment," said Lee Woolley, proposed president and CEO.

Why custody is a core goal rather than deposits

The main attraction of the OCC National Trust Bank license lies in the custody business. Davis Wright Tremaine, law firm, describes custody as "the foundation of any digital asset business." National Trust Bank licenses can place cryptocurrency companies under the federal regulatory umbrella, provide some compliance certainty in their response to state regulations, while also providing institutional customers with peace of mind about using a recognized regulatory system.

This is critical for institutions that tend to use regulated counterparties when uploading assets. In some cases, a federal license can also help qualify as a qualified custodian.

Anchorage Digital has long been the only cryptocurrency company to conduct business in this way. But as more companies begin to apply for federal licenses, the focus of competition gradually shifts to security, compliance, tokenized services and agency size, and this situation is no longer sustainable.

License application boom measured by data

The OCC said it has received 40 applications for new banking licenses in the past 18 months or so. Among them, 23 (57.5%) involved some form of digital asset activity.

Block reported that of the 40 applications, 21 have been approved and 2 have been rejected. OCC banking license applications: 40 submissions, 23 involving digital assets #

According to Jonathan Gould, the Comptroller of the Currency, these 23 digital asset initiatives mark an eight-fold increase in the past four years, demonstrating that cryptocurrency activity is taking on an increasingly solid position in the regulated banking sector.

Although the purpose is the same, not all approvals are the same. The OCC has conditionally approved license applications or conversion requests for BitGo, Paxos, Fidelity Digital Assets, Ripple and Circle's proposed First National Digital Currency Bank.

Stability coin issuer Coinbase received preliminary conditional approval to establish a national bank on April 2, 2026. Subsequently, Circle received final approval on July 10 to establish Circle National Trust Bank.

Revolut's approval on September 2 is part of a broader fintech licensing phenomenon, but the OCC provides licensing to do business as a full-service insured national bank, rather than as a national trust bank. 2025 - 2026 Major OCC Crypto and FinTech Banking License Approval Timeline #

These licenses grant nothing

National Trust Bank is not just a commercial bank labeled with encryption. According to Block, Builders Bank will not be able to take deposits or issue loans like commercial banks. Trust companies are usually not insured and must comply with approved fiduciary powers and other powers.

This distinction lies at the heart of political opposition. In a May 18 letter to Gould, Senator Elizabeth Warren pointed out that the approval was an abuse of the National Banking Act, adding:

"These companies are effectively 'cryptobanks' that want to evade the basic safeguards and obligations that come with being banks."

In addition, trust licenses do not guarantee access to the Federal Reserve's payment system. In May, the Federal Reserve proposed a special-purpose "payment account" proposal for organizations that meet legal requirements, but the proposal did not expand the number of institutions eligible to have federal accounts.

The background of stablecoins and global nerves

The development of the license boom is accompanied by the promulgation of the GENIUS Act on July 18, 2025. In February, the OCC proposed implementing rules covering reserves, redemption, custody, risk management and issuer applications.

The impact goes beyond the scope of U.S. licensing. The BIS warned in August that wider use of U.S. dollar stablecoins could encourage "digital dollarization" and weaken the monetary sovereignty of certain countries. The IMF also believes that tokenization may accelerate cross-border capital flows and currency substitution.

For the crypto market, more federally licensed custodians could make it easier for bitcoins, stablecoins, and tokenized assets to be held and transferred by institutions under familiar supervision. But the same infrastructure could also extend the impact of dollar-based tokens overseas, turning the U.S. custody race into a larger battle over who controls the trajectory of tokenization finance.