Block Applies For OCC Charter To Launch Digital Asset Trust Bank

Block Inc. has applied for an OCC charter to establish Builders Bank & Trust, N.A., a specialized national trust bank designed to house its expanding bitcoin and stablecoin operations under a unified federal regulatory framework. If approved by the Office of the Comptroller of the Currency, the new entity will operate as an uninsured, non-deposit-taking institution focused entirely on digital asset custody and fiduciary services rather than consumer retail banking.

"We look forward to working with the OCC as we pursue a charter designed to support the secure custody of assets for Block and its customers," said Lee Woolley, President and CEO of Builders Bank and Block's Digital Asset Strategy Lead, in a statement regarding the application.

Operational Scope and Leadership Structure

Unlike traditional commercial banks, Builders Bank & Trust will not issue retail loans or accept standard consumer deposits. Instead, the institution's charter focuses on providing specialized custody infrastructure, asset protection, and fiduciary administration for digital assets held by Block and its ecosystem of users.

Leadership for the proposed trust bank will be spearheaded by Lee Woolley, who currently leads digital asset strategy at Block. Woolley brings traditional banking experience to the role, having previously held senior leadership positions at financial institutions including Northern Trust and BNY Mellon.

Why a Federal Charter Matters for Block

Securing a national trust charter under the OCC provides fintech firms like Block with a single, federal regulatory standard across state lines, bypassing the complex patchwork of individual state money transmitter licenses. This centralized oversight becomes critical as the company scales its cryptocurrency products, mining hardware initiatives, and stablecoin payment infrastructure.

Federal supervision also provides institutional counterparties and customers with clearer legal protections regarding asset segregation and bankruptcy remoteness. As digital asset markets mature, financial regulators have placed scrutiny on how custodians store and manage cryptographic keys on behalf of retail and institutional clients.

Regulatory Review Process Ahead

Formal charter approval remains required from the OCC before Builders Bank can legally commence any operational activities. The review process involves evaluations of the applicant's risk management systems, anti-money laundering controls, capital adequacy plans, and cybersecurity infrastructure.

While the application marks a strategic step in Block's integration of blockchain technology into its core financial services, the timeline for a final regulatory decision by the OCC is subject to standard agency review procedures.