Block has applied to the Office of the Comptroller of the Currency to establish Builders Bank & Trust, N.A., an uninsured national trust bank that would provide custody and fiduciary services for Bitcoin, stablecoins and other assets. The proposal would place a major fintech company’s digital-asset operations under direct federal banking supervision rather than a patchwork of state-level licensing regimes.
The application, filed Tuesday, names Woolley as the proposed bank’s president and chief executive officer if the OCC approves the charter. Block said the institution would operate as a national trust bank, a specialized type of federally chartered bank that can hold and administer assets for clients without taking insured retail deposits.
For Block, the charter would create a federally supervised structure for services that have become increasingly central to the cryptocurrency market: secure asset custody, transaction administration and other fiduciary functions. It would also give the company a potential route to offer those services nationally under one primary regulatory framework.
Block targets federally supervised crypto custody
An uninsured national trust bank differs from a traditional commercial bank in several practical ways. It would not rely on Federal Deposit Insurance Corp. protection for customer deposits, and it would not necessarily engage in conventional lending or checking-account services. Its focus would instead be safeguarding assets and carrying out responsibilities on behalf of clients.
That structure has become attractive to companies operating in cryptocurrency, where custody can involve securing private keys, settling transfers, administering reserves and managing assets held for institutions or payment providers. A federal trust charter would subject Builders Bank & Trust to OCC oversight, including standards around governance, capital, risk management and compliance.
Block’s filing signals that it sees custody and related infrastructure as a regulated financial-services business rather than simply a technology feature. The company already operates across payments, consumer finance and Bitcoin-focused products, making a trust-bank structure a possible bridge between its existing financial platforms and a more formal digital-asset custody operation.
The OCC has not yet granted final approval to the proposed bank. Applications for new national banks generally proceed through an agency review that examines the business plan, management team, capital, controls and ability to comply with federal banking rules.
Charter applications are gathering pace
Block’s proposal arrives amid a growing queue of fintech and crypto-focused firms seeking national bank charters. The OCC has received 40 de novo, or newly formed, charter applications since 2025, according to the figures cited in Block’s materials. The agency approved 21 and denied two during that period, while other applications remained under review or were withdrawn.
Twenty-three of those applications have focused directly on digital assets, the materials said. That concentration reflects a change in the industry’s regulatory priorities. Companies that once built their U.S. operations around state money-transmitter licenses, trust charters and specialized state regimes are increasingly pursuing a federal path.
A national charter could reduce the need to navigate separate approval processes in dozens of states, though it would also bring ongoing examination by a federal banking regulator. For firms handling stablecoin reserves or customer crypto assets, the trade-off is often clearer legal standing and a more standardized supervisory relationship.
Revolut received conditional approval from the OCC last week, according to the supplied information. Other firms pursuing national charters include Paxos, BitGo, Ripple and Circle, all of which operate in areas ranging from stablecoin infrastructure and payments to cryptocurrency custody.
Conditional approval does not authorize an applicant to begin operating immediately. Firms typically must meet requirements imposed by the OCC before receiving permission to open. Those conditions can cover capitalization, hiring, compliance systems, third-party arrangements and operational readiness.
Stablecoin rules reshape the appeal of trust banks
The application also follows the passage of the GENIUS Act in July, which established a federal framework for payment stablecoins. The law has brought more attention to the legal structures through which companies issue, hold and manage dollar-linked digital tokens.
Trust-bank charters may be particularly relevant for firms whose business models involve payment tokens and the assets backing them. Stablecoin operators need arrangements for reserves, redemption processes, safeguarding customer assets and compliance controls. A federally chartered entity could offer a more formal foundation for some of those functions, depending on the scope of its authorization and the company’s business model.
World Liberty Financial, a crypto venture backed by President Donald Trump’s family, recently received conditional OCC approval, according to the information provided. Its progress has added to scrutiny in Washington over how federal bank-charter decisions intersect with businesses connected to political figures.
The project’s stablecoin has a supply exceeding $3 billion across 10 networks, according to the supplied article. Its OCC status remains conditional, meaning it must satisfy the agency’s requirements before it can operate under the charter.
Federal oversight brings obligations as well as credibility
For Block and other applicants, a national trust-bank charter would not eliminate regulatory obligations. It would replace some state-by-state complexity with direct federal supervision, while adding the expectations applied to national banks.
That includes demonstrating that executives and directors are qualified to run the institution, maintaining adequate financial resources, protecting clients’ assets and addressing anti-money-laundering obligations. Digital-asset companies also face technical demands that traditional trust businesses may not encounter, including wallet security, blockchain transaction monitoring and controls over smart-contract or token-related risks.
The competitive effect could be substantial in custody and stablecoin services. Firms that secure charters may gain an advantage when dealing with corporate clients that want regulated counterparties, particularly those unwilling or unable to rely on lightly supervised crypto providers. A charter alone would not guarantee commercial success, but it could give clients a clearer framework for assessing oversight and accountability.
Block’s application therefore places the company among the firms seeking to turn digital-asset infrastructure into a federally regulated banking activity. The OCC’s decision will determine whether Builders Bank & Trust becomes another example of that model moving from a policy ambition into an operating institution.
As Bitcoin banking evolves, strengthen your knowledge of secure crypto storage with our guide on crypto storage options.
Disclaimer: The content on this page is provided for general informational purposes only and does not represent the views or financial advice of Toobit. We make no guarantees regarding the accuracy or completeness of this information and shall not be held liable for any errors, omissions, or outcomes resulting from its use. Investing in digital assets involves risk; users should independently evaluate their financial situation and the risks involved. For further details, please consult our Terms of Service and Risk Disclosure.
