Block Inc, the company behind Square and Cash App, has officially submitted an application for a national trust bank charter to the US Office of the Comptroller of the Currency (OCC). The new entity, named Builders Bank & Trust, will be headquartered in Sioux Falls, South Dakota, and operate entirely without physical branches.
Builders Bank is designed as a non-depository institution that will neither accept customer deposits nor issue loans. Its operational focus is placed purely on digital asset custody services, Bitcoin buy-sell order execution, and stablecoin transaction settlements. The decision to offer stablecoin settlement is notable, given that Jack Dorsey previously expressed skepticism toward such instruments, preferring instead to build products directly on top of the Bitcoin network.
Over the past eight years, Block has managed its crypto operations using more than 50 state-level money transmitter and virtual currency licenses. Its transaction volume underscores the need for centralized authorization: Cash App processed $10.7 billion in Bitcoin transactions throughout 2025, and served two million monthly active crypto users in the second quarter of 2026. A federal charter promises a streamlined path to replace the complexity of dozens of local rules under a single regulatory umbrella.
Not Led by the Founder
Despite being closely associated with Jack Dorsey, his name is not listed among the directors or executives in the application filing. The chairman and CEO roles at Builders Bank have been handed to Lee Woolley, a former executive at banking institutions including Northern Trust and BNY Mellon. Dorsey’s involvement in the bank filing is strictly limited to his status as a co-founder of Block.
Queue of Applicants and Senate Opposition
Block’s move adds to the growing lineup of companies seeking OCC approval. The US banking regulator granted conditional approval for five crypto trust charters last December to Circle, Ripple, BitGo, Fidelity Digital Assets, and Paxos. Three additional approvals followed in February for Crypto.com and Stripe-owned Bridge, followed by an initial green light for Coinbase in April.
The OCC’s doors certainly have not opened for all applicants. An application from Wise National Trust was officially rejected in July 2026. Meanwhile, filings from Morgan Stanley, Payoneer, Zerohash, Kraken, and the Donald Trump-affiliated World Liberty Financial remain stalled on the waiting list.
Another obstacle comes from the legislature. Senator Elizabeth Warren continues to argue that the OCC has no legal authority to issue trust charters to companies unwilling to perform traditional fiduciary work. With the number of applicants continuing to swell, turning paper charters into operational trust banks is unlikely to conclude anytime soon. Reported by Decrypt.
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Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
