Jack Dorsey’s Block seeks US trust bank charter for Bitcoin, stablecoin
Reported by Cointelegraph · AI-assisted summary by ChikoCorp AI News Desk
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Summary
Jack Dorsey’s payments company Block has applied to the US Office of the Comptroller of the Currency (OCC) for a federal trust bank charter to create Builders Bank & Trust, an uninsured national trust bank focused on custody services for Bitcoin and stablecoins. The new bank would operate under OCC supervision but would not accept deposits or make loans. Lee Woolley, Block’s digital asset strategy lead, is set to be president and CEO.
Why it matters
According to Block, the national trust bank charter would provide a consistent regulatory framework to support the expansion of its custody business for digital assets. The development aligns with a growing trend of fintech and crypto companies seeking federally regulated charters to legitimize and scale their crypto custodial services. The source does not elaborate further on industry or user impact.
Key context
Block’s move follows similar efforts by other crypto and fintech companies: Ripple has conditional approval for a trust bank charter, Circle and BitGo have received final approvals, and companies like Kraken’s parent Payward and Zerohash have also applied. Block already operates Square Financial Services, an industrial bank, whose experience informs this new charter attempt. The proposed bank would differ from traditional banks by focusing solely on custody and fiduciary services without deposit-taking or lending.
Key numbers and entities
Involved entities: Block, Builders Bank & Trust, Office of the Comptroller of the Currency (OCC), Square Financial Services, Ripple, Circle, BitGo, Payward (Kraken’s parent), Zerohash. Key people: Lee Woolley (Block’s digital asset strategy lead, Builders Bank president and CEO). No financial figures are provided.
What remains unclear
The timeline for the OCC’s decision on the application is not specified. The source does not detail the exact scope of custody services or the stablecoins involved. It is unclear how this charter would specifically impact Block’s existing crypto operations or customers.