Block Seeks National Trust Bank Charter for Digital Asset Custody
- Block filed an application with the OCC on September 4 to establish Builders Bank & Trust, an uninsured national trust bank.
- The proposed bank would custody Bitcoin and other digital assets, settle stablecoins, and operate without taking deposits or making loans.
- In the previous year, Block managed approximately $10.7 billion in Bitcoin volume across over fifty state licenses.
- Builders Bank & Trust would be headquartered in Sioux Falls, South Dakota, with no physical branches.
- Lee Woolley is set to chair the bank and serve as chief executive, while Jack Dorsey is not listed among its organizers or executives.
Block’s move to charter Builders Bank & Trust aims to provide a consistent national framework for its digital asset services as the business scales. This aligns with the company’s extensive experience in handling significant Bitcoin transaction volumes under multiple state licenses.
By establishing a federally chartered trust bank, Block seeks to enhance its ability to manage digital assets and stablecoin settlements effectively without traditional banking functions like deposits or loans. (Source)
