Block, founded by Jack Dorsey, is seeking to establish Builders Bank & Trust, N.A., an uninsured national trust bank. The company has filed an application with the Office of the Comptroller of the Currency (OCC) for this purpose.
The proposed bank will focus on providing custody and fiduciary services for bitcoin and stablecoins under federal supervision. This approach marks a shift from relying on state-level licensing for such services.
Builders Bank & Trust will operate differently from traditional commercial banks. It will not engage in lending or taking deposits from customers.
The initiative is aimed at enhancing institutional adoption of the cryptocurrency market by offering federally regulated custody services.