Block Seeks Approval for National Trust Bank to Enhance Digital Asset Custody
- On September 8, Block applied to the U.S. Office of the Comptroller of the Currency (OCC) for Builders Bank & Trust, N.A., an uninsured national trust bank.
- If approved, Builders Bank will provide custody and fiduciary services for bitcoin, stablecoins, and other digital assets but will not accept deposits or issue loans.
- Lee Woolley, with over two decades of banking experience, is expected to lead Builders Bank.
- Since January 2025, the OCC has received a total of 40 applications for new banks from fintech and crypto companies, approving only half so far.
- Circle and Ripple Labs were among five crypto firms conditionally approved by the OCC in December to establish national trust banks.
Block’s application reflects a growing trend among fintech and crypto companies seeking federal charters to enhance their operational frameworks under regulatory oversight. The approval process requires meeting specific OCC requirements before any banking operations can commence.
Block aims to consolidate its custody operations under federal supervision through Builders Bank, which could significantly expand its service offerings in managing digital assets like stablecoins and bitcoin. (Source)
