According to reports from Investing.com, Block has filed with the Office of the Comptroller of the Currency to launch Builders Bank & Trust, N.A., a proposed national trust bank. The proposed institution would operate without accepting deposits or making loans, focusing exclusively on custody and fiduciary services for Bitcoin and stablecoins. As reported by Investing.com, the filing marks another step in Block's broader integration of traditional financial charters with crypto infrastructure, building on its existing industrial bank, Square Financial Services. The filing was submitted on September 9, 2026, and the proposed entity would be uninsured, meaning holdings would not carry federal deposit insurance. The application does not allow Builders Bank to begin operations immediately - the proposed institution would only launch after securing required regulatory approvals from the OCC. The company stated that a federal charter would support those activities and create a federal framework for certain custody and related services it already offers.
According to Investing.com, Lee Woolley would serve as president and CEO of Builders Bank, bringing more than 20 years of banking and financial services experience. Woolley currently serves as Block's Digital Asset Strategy Lead and previously held senior positions at Treasury Department Federal Credit Union, Northern Trust, and BNY Mellon. In a statement, Woolley emphasized that the lender would build on Block's digital asset experience, its history with Square Financial Services and the banking expertise of its team. He stated that the proposed bank fits Block's broader vision of economic empowerment, looking forward to working with the OCC as they pursue a charter designed to support the secure custody of assets for Block and its customers. The move reflects Block's strategic push to streamline its digital asset capabilities under direct federal oversight as it scales, positioning the company to support sophisticated custody infrastructure for both its internal ecosystem and external client base.
According to Investing.com, a national trust structure allows digital asset companies to conduct approved custody and trust activities under federal supervision without operating as a conventional retail bank. As reported by crypto.news, crypto trust banks can provide services such as digital asset custody and stablecoin reserve management while remaining outside the traditional deposit-taking model. The federal charter would establish consistent supervision for certain custody activities as those operations scale, with Bitcoin and stablecoins specifically identified among the assets Builders Bank could custody. Builders Bank would operate as an uninsured, non-deposit-taking national trust bank and would not accept deposits or make loans, providing a federal supervisory framework for certain custody and related activities currently offered by Block. The word "uninsured" in the filing is crucial - it means no FDIC backstop on holdings, with deposit insurance covering cash deposits at member banks up to a set limit but not covering crypto assets. According to Davis Wright Tremaine, custody is described as "the foundation of any digital-asset business," and a national trust bank charter can bring cryptocurrency companies under federal umbrella with certain comfort in dealing with state regulations.
According to Investing.com, market reaction to the regulatory filing remained muted during extended trading on Tuesday, with Block shares holding flat following the announcement. Investors are expected to watch the OCC's review process closely, as formal charter approval remains required before Builders Bank can commence operational activities. The filing comes as Bitcoin traded at $79,173 (+0.6% on the day) as of September 9, 2026, with the broader market sitting in "Greed" territory on the Fear & Greed index. The application comes during a period of increased applications from cryptocurrency and fintech companies seeking federal banking supervision. As reported by crypto.news, Comptroller Jonathan Gould stated in August that digital asset companies conducting legally permissible activities should have access to the U.S. national banking system. The OCC has received 40 de novo charter applications since 2025, approving 21 applications while denying two, with 13 pending digital asset licensing applications at the time.
According to crypto.news, the OCC has used national trust charters more extensively with digital asset businesses since late 2025. Ripple, Circle, Paxos, BitGo and Fidelity Digital Assets received conditional approvals in December 2025, while Circle received final OCC approval in July to establish Circle National Trust. Revolut also moved further through the process after receiving conditional approval to establish Revolut Bank US, N.A., with plans to launch in the first half of 2027 after injecting approximately $95 million in initial capital. The OCC has also recently granted conditional approval to President Donald Trump's family-backed World Liberty Financial, amid scrutiny in Washington over possible conflicts of interest. As CoinMarketCap notes, the filing represents a structural signal rather than a price catalyst, with Block's application joining a growing line of fintechs seeking national charters to bring crypto custody and stablecoin activity inside the federal banking perimeter. The charter rush is unfolding alongside the GENIUS Act, enacted July 18, 2025, with the OCC proposing implementing rules in February covering reserves, redemption, custody, risk management and issuer applications.
