Block Sought Federal Charter for Digital Asset Bank
The firm applied to the OCC to establish an uninsured national trust bank for cryptocurrency custody services.
Updated on Sept. 28, 2026 in Financial Services
Live Poll
Do you trust fintech apps more when they operate their own banking infrastructure?
Block filed an application with the Office of the Comptroller of the Currency on September 8, 2026, to launch Builders Bank & Trust. The proposed entity would operate as an uninsured national trust bank headquartered in Sioux Falls, South Dakota, focusing on bitcoin and stablecoin custody.
Why it matters
Block aims to streamline its operations by replacing approximately 50 separate state money-transmitter licenses with a single federal charter. This consolidation is designed to reduce regulatory overhead and decrease reliance on third-party banking partners.
The application for Builders Bank & Trust represents one of 23 digital-asset charter filings out of 40 recent applications to the OCC. The entity intends to replace 50 disparate state money-transmitter licenses with a single national trust framework.
The players
Block
This is a financial technology company that provides diverse services including payment processing and cryptocurrency infrastructure.
Lee Woolley
He is the president and CEO of the proposed Builders Bank & Trust entity.
Chime
This is a financial technology firm that recently announced a $590 million acquisition of Stride Bank.
Office of the Comptroller of the Currency
This federal agency is responsible for chartering, regulating, and supervising all national banks and federal savings associations.
The details
Builders Bank & Trust will operate without retail branches, serving specifically as a trust bank for fiduciary and custody services rather than taking deposits or issuing loans. Lee Woolley has been appointed as the president and CEO to lead the entity during this transition.
Timeline
September 8, 2026: Block filed its application for a national trust bank charter.
September 9, 2026: Chime announced its acquisition of Stride Bank.
First half 2027: The Chime acquisition of Stride Bank is expected to close.
First half 2027: A consortium of 21 global banks plans to launch a new stablecoin.
Market Landscape
Block follows a growing trend evidenced by the 23 digital-asset charter applications submitted to the OCC, indicating a shift toward federal regulation for crypto-focused entities. This move mirrors Chime's recent $590 million acquisition of Stride Bank, highlighting an industry-wide push to internalize banking infrastructure.
The transition to a national trust bank model is intended to improve back-end efficiencies for Block, though it does not provide new retail banking services like consumer deposits or loans. Customers may experience more stable platform performance as the firm reduces its reliance on third-party partners.
The takeaway
Fintech companies are increasingly pursuing federal charters to simplify the complex web of state-by-state money transmitter licenses. This shift allows large platforms to lower operational costs and gain greater control over the custody of digital assets.
Further reading
For more information on the evolving regulatory landscape, visit the Financial Services section.
Live Poll
Do you trust fintech apps more when they operate their own banking infrastructure?
