Block Applies to Launch Builders Bank & Trust, a Federally Chartered Trust Bank

Jack Dorsey's fintech giant Block has filed an application with federal regulators to establish a national trust bank called Builders Bank & Trust — a move that would give the company a formal federal supervisory framework for custody and fiduciary activities it already conducts. The proposed institution would specialize in holding digital assets, including stablecoins and bitcoin, but would operate differently from a traditional bank: no deposit-taking, no lending.

The application now sits with the Office of the Comptroller of the Currency, which must approve any federally chartered bank. If greenlit, Block veteran Lee Woolley — currently the company's digital asset strategy lead — would serve as president and CEO of the new entity. Block framed the move as a natural extension of its existing infrastructure, pointing to its experience running Square Financial Services, an FDIC-insured industrial bank in Utah.

The timing is notable. The regulatory environment around crypto custody and stablecoins has shifted considerably, with Washington showing greater openness to crypto-friendly bank charters. For Block, securing a trust bank charter would let it scale custody services under a unified federal umbrella rather than navigating a patchwork of state-by-state licensing — a significant operational and competitive advantage as institutional demand for bitcoin and stablecoin custody grows.