Block applies for national trust bank license t...

Block has applied for a national trust bank license, according to a report originally published by Pluang. The application places the financial-services and technology company in a regulatory process that could expand the range of federally supervised trust activities it may be permitted to conduct if approved.

A national trust bank charter is generally associated with trust, fiduciary, custody and related financial services. It is distinct from a traditional commercial-bank charter, which is typically associated with deposit-taking and lending. An application does not itself grant Block the authority to conduct any new regulated activity.

In the United States, national bank and trust-bank charters are overseen at the federal level by the Office of the Comptroller of the Currency. Regulators review applicants’ proposed business models, governance, risk controls, capital and compliance arrangements before deciding whether to approve a charter.

For Block, the move signals interest in operating within a more formal federal banking framework. The company is best known for financial-technology products, including payment services and consumer-facing financial tools. The report does not provide further details on the timing of a decision or the specific services Block would seek to offer through a national trust bank.