Dorsey’s Block Applies for Bitcoin Bank Charter

The update

Block, the company founded by Jack Dorsey, has applied to the Office of the Comptroller of the Currency for a national trust bank charter called Builders Bank & Trust. The proposed institution would provide custody services for Bitcoin and other digital assets, execute customer buy and sell orders, and settle stablecoins. Unlike traditional banks, Builders Bank would not accept deposits or make loans.

Why it matters

This move represents a significant step toward mainstream acceptance of Bitcoin within the traditional financial regulatory framework. By seeking a federal charter, Block aims to consolidate its digital asset operations currently spread across more than 50 state money transmitter licenses into a single, nationally supervised institution. This could set a precedent for how crypto companies navigate regulatory oversight while providing custody services.

What to watch

Will the OCC approve Block’s application, and how would this impact the broader crypto custody landscape? How will the bank handle stablecoin services given Dorsey’s previously expressed skepticism toward stablecoins? What regulatory challenges might emerge as Block attempts to operate at the intersection of traditional banking and digital assets?

Sources

• decrypt.co — Details about Block's application and proposed operations
• cointelegraph.com — Information about the regulatory framework and industry context