Block is seeking a national trust bank charter from the U.S. Office of the Comptroller of the Currency, according to a report published by WuBlockchain. The application would establish Builders Bank & Trust as a federally regulated vehicle for bitcoin and stablecoin custody, extending Block’s existing payments and hardware footprint into bank-chartered digital asset infrastructure.
Why the charter application could reshape Block’s custody push
The filing signals that Block is positioning custody as a core product rather than a supporting feature. A national trust bank charter could allow the company to hold bitcoin and stablecoin assets under a federal regulatory umbrella, potentially reducing reliance on state-by-state money transmitter licenses and third-party custodians. That is a different path from Citi to Launch Bitcoin-First Digital Asset Custody Later This Year, where a traditional global bank is building its custody stack within an existing institutional framework.
For a company already serving millions of retail users through Cash App and Square, a trust charter would bring custody in-house and align with Block’s broader bitcoin strategy. The move also lands as spot bitcoin products are drawing capital, as seen in Bitcoin and Ether ETFs Draw $1.2B as Spot Leads Rally, underscoring how regulated exposure and custody remain tightly linked.
Still, custody infrastructure carries operational risk. Recent incidents such as the disputed 4,000 BTC peg-out on the Liquid sidechain, covered in Ledger CTO: 4,000 BTC Pegged Out of Liquid Bridge, ‘Whitehat’ Claim Raises Doubts, highlight why holder protections, auditability, and security design are central to any custody-focused charter review.
What to watch as the OCC considers the application
The OCC’s review will likely focus on capital adequacy, internal controls, risk management, and how Builders Bank & Trust would segregate digital asset custody from commercial banking activities. Approval would not guarantee a product launch, but it would mark one of the more direct attempts by a large payments company to operate as a federally chartered trust bank for digital assets. Market participants will watch whether the agency raises conditions around stablecoin reserves, liquidity, and consumer protection, and whether other payments platforms pursue similar charters.
