Jack Dorsey’s Block seeks US trust bank charter for Bitcoin, stablecoin
The proposed Builders Bank would offer federally supervised digital asset custody but would not accept deposits or issue loans.
Jack Dorsey's fintech company Block has applied for a federal trust bank charter in the United States, with plans to establish an institution called Builders Bank. The proposed bank would be specifically designed to offer custody services for Bitcoin and stablecoins under federal supervision. Notably, the entity would operate outside traditional banking parameters — it would not accept customer deposits or issue loans.
Block, formerly known as Square, has been a consistent advocate for Bitcoin adoption, with Dorsey himself being one of the cryptocurrency's most prominent corporate supporters. The application for a federal trust charter would place Builders Bank under the oversight of national banking regulators, providing a layer of institutional legitimacy that state-chartered entities do not always carry. This move reflects a broader trend of crypto-native and crypto-adjacent firms seeking formal regulatory standing in the United States.
The bid comes at a time when regulatory clarity around digital asset custody is increasingly becoming a competitive differentiator in the financial industry. A federally chartered trust bank specializing in Bitcoin and stablecoin custody could attract institutional clients seeking compliant, regulated storage solutions, potentially positioning Block as a significant player in the digital asset custody space alongside established names like Coinbase Custody and BitGo.
Observers will be watching for regulatory responses from the Office of the Comptroller of the Currency, which oversees federal bank charter applications, as approval timelines and conditions could shape the scope of Builders Bank's eventual operations.
Source: Cointelegraph
