Block Files for Federal Charter to Offer Bitcoin Custody Services via Builders Bank

Block, the financial technology company co-founded by Jack Dorsey, has submitted an application for a federal national trust bank charter to create Builders Bank & Trust, N.A. This initiative aims to offer federally supervised custody services for Bitcoin and stablecoins.

The proposed Builders Bank will operate as an uninsured and non-deposit-taking institution. Lee Woolley, Block’s digital asset strategy lead with over two decades of experience in banking, will head the bank. Woolley emphasized that the bank is well-positioned to support Block’s vision of economic empowerment, leveraging the company’s experience in the digital asset space and its history with Square Financial Services.

If approved by the Office of the Comptroller of the Currency (OCC), this charter would allow Block to function within a consistent federal regulatory framework, enabling the company to scale its custody services without engaging in traditional banking activities such as accepting deposits or issuing loans.

Market analysts view this move as indicative of increasing institutional interest in Bitcoin custody solutions, which could positively influence Bitcoin's price predictions. As the application progresses, stakeholders will be watching for regulatory responses and any potential impacts on market sentiment regarding cryptocurrency.