Jack Dorsey Proposes ‘Block’ to Become a Bitcoin and Stablecoin Bank

Block, the financial technology company founded by Jack Dorsey, has applied to establish a federally regulated institution focused on Bitcoin and stablecoin custody. 

The proposed entity, Builders Bank & Trust, would operate as an uninsured national trust bank under the supervision of the United States Office of the Comptroller of the Currency. It would safeguard digital assets but would not accept deposits or provide loans.

Key Takeaways

• Block has applied for a national trust bank charter.
• Builders Bank would custody Bitcoin and stablecoins.
• The OCC has not approved the application.

Block Submits Its Application to the OCC

Block announced on Tuesday that it had submitted an application to the OCC. The company wants to establish Builders Bank & Trust, N.A. as a federally chartered trust bank.

If regulators approve the application, the proposed bank would offer custody and other fiduciary services for Bitcoin and stablecoins. Federal supervision could also provide a consistent framework for certain custody services that Block already offers.

Lee Woolley has been selected to serve as president and chief executive officer of Builders Bank. He said the proposed institution would draw on Block’s digital asset experience, the operating history of Square Financial Services, and the banking knowledge of its new team.

The application marks the beginning of a regulatory review. It does not mean that Block has received permission to open the institution.

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What Type of Bank Would Builders Bank Be?

Builders Bank would differ from a conventional commercial bank. It would not take customer deposits or make loans. It would also operate without deposit insurance.

Its main purpose would be to hold digital assets and provide related trust services. Cryptocurrency custody involves protecting the private keys that control assets recorded on a blockchain. Losing or exposing those keys can place the assets at risk.

Some reports may describe the proposal as a Bitcoin bank by Jack Dorsey or a stablecoin bank by Jack Dorsey. Those descriptions require context. Builders Bank would serve as a regulated custodian rather than a full service consumer bank.

The company has not disclosed which stablecoins the institution would support. It has also provided no details about customer eligibility, insurance arrangements, product integration, or a possible launch date.

How the Proposal Fits Block’s Bitcoin Strategy

The Jack Dorsey BTC strategy has developed across several parts of Block’s business. The company has purchased Bitcoin regularly and holds the asset on its balance sheet. Cash App also allows customers to buy and sell Bitcoin.

A federal trust bank would move Block into another part of the market. Instead of focusing only on Bitcoin ownership and consumer trading, the company could offer regulated custody infrastructure.

The proposed stablecoin bank would also expand Block’s role in digital asset services. However, the application does not indicate that Builders Bank plans to issue its own stablecoin. Its stated purpose centers on custody.

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Block Joins a Wider Charter Race

Jack Dorsey proposes Block to become a Bitcoin and Stablecoin bank as more cryptocurrency and financial technology companies seek federal trust charters.

Ripple, Circle, BitGo, Fidelity, Paxos, Coinbase, Revolut, and World Liberty Financial have also pursued federal banking approval. Revolut recently received conditional approval, while other companies remain at different stages of the process.

The OCC has received 40 applications for new charters since 2025. It approved 21 and rejected two during that period. These figures show growing interest in federal oversight among digital asset businesses.

A national charter could allow Block to operate under one federal framework instead of relying on a separate collection of state rules. It could also strengthen the company’s credibility with institutional clients that require regulated custody arrangements.

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What Happens Next?

The OCC will examine the proposed bank’s business plan, management, capital, compliance systems, and risk controls. Block cannot begin operating Builders Bank unless the regulator approves the application and the company meets any attached conditions.

Approval could give Block a larger role in institutional Bitcoin and stablecoin custody. Rejection or a prolonged review would delay that expansion. Until the OCC announces its decision, Builders Bank remains a proposal.

FAQ

Is Block becoming a traditional bank?

No. Block applied to establish an uninsured national trust bank. The proposed institution would not accept deposits or issue loans.

What would Builders Bank do?

It would provide custody and fiduciary services for digital assets, including Bitcoin and stablecoins.

Has the OCC approved Builders Bank?

No. Block has filed an application, and the outcome remains undecided.

Would Builders Bank issue a stablecoin?

Block has not announced plans to issue a stablecoin through the proposed institution.

Why does Block want a federal charter?

A federal charter could place its custody activities under OCC supervision and provide a national regulatory framework for digital asset services.

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