Bitcoin Custody: Block Seeks OCC Charter After $10.7B Volume
Bitcoin custody took center stage Tuesday as Block Inc. applied to the Office of the Comptroller of the Currency for a national trust bank charter. The move aims to house Builders Bank & Trust, an uninsured, non‑depository entity to safeguard digital assets, following $10.7 billion in Bitcoin transaction volume in 2025.
Block Inc. applied to the Office of the Comptroller of the Currency (OCC) for a national trust bank charter to launch Builders Bank & Trust, an uninsured, non‑depository institution focused on safeguarding Bitcoin and other digital assets. The application follows roughly $10.7 billion in Bitcoin transaction volume handled in 2025 and about two million monthly crypto users by the second quarter via Cash App.
The proposed entity would not accept deposits or make loans. Its mandate would center on digital asset custody, executing customer buy and sell orders on a riskless principal basis, and facilitating stablecoin settlement.
Why is Block seeking a national trust bank charter?
Block is pursuing a national trust bank charter to consolidate and scale its digital asset operations—Bitcoin custody, riskless principal order execution, and stablecoin settlement—under a single federal framework. The company has operated crypto services for about eight years under more than 50 state money transmitter and virtual currency licenses and now seeks a unified charter.
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Operating under a federal charter would centralize compliance for a business that already supports millions of monthly crypto users through Cash App. The proposed Builders Bank & Trust would be structured as uninsured and non‑depository, keeping its scope limited to custody and execution rather than traditional banking activities like taking deposits or issuing loans.
What would Builders Bank & Trust actually do?
Builders Bank & Trust would custody Bitcoin and other digital assets, execute customer buy and sell orders as a riskless principal, and support stablecoin settlement. It would not take deposits or extend credit. The structure positions the institution as a specialized trust bank built for digital asset safekeeping and transaction support.
Block’s application details eight years of digital asset operations across more than 50 state licenses, including handling approximately $10.7 billion in Bitcoin transaction volume in 2025 and supporting roughly two million monthly crypto users by the second quarter through Cash App. The charter would house those core activities within a single national trust framework.
Metric
Current framework
Proposed trust bank
Regulatory status
>50 state money transmitter/virtual currency licenses
National trust bank charter (application filed with OCC)
Deposits
No insured deposits
Uninsured, non‑depository (no deposits)
Lending
No loans
No loans
Bitcoin transaction volume (2025)
~$10.7 billion
N/A
Monthly crypto users (by Q2)
~2 million via Cash App
N/A
Business activities
Digital asset services via Cash App
Custody, riskless principal execution, stablecoin settlement
How does Block’s existing footprint support the charter bid?
Block brings eight years of crypto operations, more than 50 state licenses, $10.7 billion in 2025 Bitcoin volume, and roughly two million monthly crypto users by the second quarter. That scale demonstrates established demand and operational experience in Bitcoin and broader digital asset services that a trust charter would formalize.
The company’s model centers on custody and riskless principal execution rather than deposit-taking or credit creation, aligning with a trust bank’s custodial profile. Stablecoin settlement is also included in scope, indicating a focus on transaction rails alongside safekeeping.
What should investors watch next?
The key variable is the outcome of the OCC review of Block’s national trust application and any conditions that may define Builders Bank & Trust’s scope. Investors should track how custody, riskless principal execution, and stablecoin settlement are implemented if approved, and whether user growth beyond roughly two million monthly accounts accelerates under a federal charter.
Block’s $10.7 billion in 2025 Bitcoin transaction volume and multi‑state licensing history set a baseline for activity that a trust bank could centralize. The forward path hinges on regulatory timing and the operational rollout of the proposed trust structure.
This article is for informational purposes only and does not constitute financial, investment, or trading advice. Cryptocurrency markets are highly volatile and carry significant risk. Always conduct your own research (DYOR) and consult a qualified financial advisor before making investment decisions. Past performance does not guarantee future results.
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