Payments giant Block aims to centralize its $10.7 billion Bitcoin transaction business by applying for a federal trust charter, seeking to replace a patchwork of state licenses with a consistent national regulatory framework.
Block's application for a national trust bank charter represents a strategic pivot to consolidate its digital asset operations under a single federal entity, reducing the complexity of managing over 50 state-level licenses. This move is designed to lower operational friction and support the long-term growth of its crypto business, which is a significant component of the Cash App ecosystem.
It is intended to act as a non-depository trust bank focused on Bitcoin custody, digital asset trading, and stablecoin settlement.
The proposed Builders Bank & Trust would provide a centralized, federal framework for Bitcoin custody and trading, potentially increasing institutional trust and accessibility for Cash App's two million monthly crypto users. By streamlining operations under a national charter, Block aims to scale its digital asset services, which already processed $10.7 billion in Bitcoin volume in 2025.
It provides a consistent national framework for custody and trading, potentially improving service reliability and scalability for Cash App users.
Block has filed for a national trust bank charter with the OCC to streamline its digital asset operations under a unified federal framework. The proposed Builders Bank & Trust would focus on Bitcoin custody, trading, and stablecoin settlement, moving away from the complexity of managing over 50 individual state licenses.
The bank is intended to serve as a specialized entity for Bitcoin custody, executing customer buy and sell orders, and facilitating stablecoin settlement under a federal regulatory framework.
No. The OCC has a history of denying applications, such as the Wise National Trust denial in July, and faces political pressure from lawmakers like Senator Elizabeth Warren regarding the agency's authority to grant such charters.