Block, the payments company founded by Jack Dorsey, is taking a major step into regulated bitcoin and stablecoin custody.

The company has applied to the US Office of the Comptroller of the Currency (OCC) to establish Builders Bank & Trust, N.A., a national trust bank that would focus on holding and managing digital assets for customers.

If approved, the bank would provide custody and fiduciary services for bitcoin and stablecoins under federal supervision.

Builders Bank would not be a traditional bank. It would not accept deposits, offer checking accounts or make loans. Instead, its main job would be to safely hold digital assets and provide related trust services.

The proposed bank would also be uninsured and would operate as a non-deposit-taking institution.

Block said the new bank would give its digital asset activities a consistent federal regulatory framework.

For Block, this is important because digital asset businesses can otherwise face different rules and licensing requirements across US states. A national trust bank would bring the proposed custody operations under the supervision of one federal regulator: the OCC.

The move also shows that Block sees digital assets as an important part of its financial services business rather than simply an additional product.

Lee Woolley, Block’s Digital Asset Strategy Lead, is expected to become president and CEO of Builders Bank if the OCC approves the application.

Woolley has more than 20 years of experience in banking and financial services. He has held senior positions at Northern Trust and BNY Mellon and previously served as president and CEO of Treasury Department Federal Credit Union.

In a statement, Woolley said the bank would build on Block’s experience in digital assets and traditional financial services. “We believe Builders Bank is well positioned to support Block’s broader vision of economic empowerment,” Woolley said.

He also said Block looks forward to working with the OCC to support the secure custody of assets for the company and its customers.

The structure of Builders Bank is important.

Unlike a normal commercial bank, it would not use customer deposits to make loans. It would instead focus on custody and fiduciary services. That makes it similar to the specialized trust banks that several digital asset companies have been pursuing through the OCC.

For Bitcoin users, the basic idea is straightforward: rather than leaving their assets with an exchange or other private custodian, or navigating the complexities and risks of self-custody when multiple parties or legal entities are involved, institutional customers could potentially use a federally supervised bank to hold their bitcoin.

The same would apply to stablecoins, which have become increasingly important for payments, trading and settlement.

Block is not alone in seeking this type of regulatory approval.

Several major digital asset and fintech companies have been pursuing OCC charters or related approvals. The group includes Coinbase, Paxos, BitGo, Ripple, Circle and Revolut.

The growing number of applications shows that the companies in the space are increasingly looking for regulated ways to provide custody and other financial services.

The OCC has received dozens of new charter applications since 2025 and has approved many of them, including applications involving fintech and digital asset companies.

The OCC must review and approve the application before Builders Bank can operate. Block has also said the bank would not begin operations until it receives all required regulatory approvals and meets the OCC’s conditions.