Block Inc. has applied for a U.S. banking charter, becoming the latest digital asset company to seek federal regulatory approval for banking operations.
The company, which operates Square, Cash App, and Bitkey, submitted its application to the Office of the Comptroller of the Currency on Wednesday to establish Builders Bank & Trust, N.A. If approved, the charter would grant the bank federally regulated status under OCC supervision.
Lee Woolley, who would serve as President and CEO of Builders Bank, stated in a company announcement that the bank would leverage Block's experience in digital assets and Square Financial Services, along with the banking expertise of the assembled team.
Proposed Services
According to Block, Builders Bank would provide custody and related fiduciary services if fully approved. The bank would specifically offer these services for bitcoin and stablecoins, positioning itself within the digital asset sector.
Competitive Landscape
Block joins a growing list of cryptocurrency firms pursuing banking charters. Several major companies have already received conditional approval from regulators, including Coinbase, Circle, Crypto.com, and Paxos. Decentralized financial protocol World Liberty Financial also received approval this year.
Block's Bitcoin Focus
Block CEO and founder Jack Dorsey has been an advocate for bitcoin adoption as everyday currency. Square, one of Block's main operations, began offering bitcoin acceptance for eligible U.S. small businesses last year, with transactions instantly converted to dollars at checkout.
