Block, Inc. seeks a national trust bank charter to reduce reliance on third-party clearing, aiming to capture fee revenue and enhance institutional Bitcoin custody infrastructure.
Block, Inc. has filed an application with the OCC to form Builders Bank & Trust, N.A., a national trust bank charter designed to bring custody and clearing operations in-house. By eliminating third-party fees and streamlining compliance, the move aims to drive significant operating leverage and improve bottom-line profitability for its Cash App and Square ecosystems.
The charter allows Block to eliminate third-party clearing and sponsor-bank fees, directing that revenue toward its own bottom line while reducing the compliance costs associated with maintaining 50 separate state money-transmitter licenses.