Block Applies for OCC Charter for Builders Bank

Block, Inc. submitted an application to the Office of the Comptroller of the Currency on Sept. 8 to establish Builders Bank & Trust, N.A., an uninsured national trust bank. The proposed entity would seek federal supervision for bitcoin and stablecoin custody and fiduciary services, rather than operate as a conventional deposit-taking lender, according to Block's announcement.

The application does not itself create the bank. Builders Bank would be able to begin the proposed operations only if the OCC approves the charter.

Block applies to form Builders Bank & Trust, N.A.

The filing identifies Builders Bank & Trust, N.A. as an uninsured national trust bank. That designation is central to the scope Block has set out: its proposal is aimed at custody and fiduciary functions involving digital assets, not a broad retail or commercial banking operation.

Block made the application public on Sept. 8 through a Business Wire release. No approval decision, timetable or launch date was provided in the disclosed materials.

Builders Bank would custody bitcoin and stablecoins without deposits or lending

If authorised, Builders Bank would provide federally supervised custody and fiduciary services for bitcoin and stablecoins. Block said the proposed bank would not take deposits and would not be permitted to make loans.

Those restrictions draw a clear boundary around the application. Customers would not be using the entity as a place to hold bank deposits, and the proposed bank would not extend credit. Instead, Block is pursuing an OCC charter for a narrower set of digital-asset custody and fiduciary activities.

Federal supervision is the immediate operational objective described in the filing, but it remains conditional on the OCC's review. Block has not said that Builders Bank is currently offering the services laid out in the application.

Lee Woolley is designated to lead the proposed bank

Lee Woolley, Block's Digital Asset Strategy Lead, has been designated to serve as Builders Bank's president and chief executive if the OCC approves the application, The Block reported.

His appointment is also contingent on approval. For now, the concrete next step is the OCC's consideration of Block's application to establish the uninsured national trust bank.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.