Block seeks national trust charter to offer crypto custody

• Key insight: Block is applying for a new charter to offer crypto custody services after working with digital assets for years.
• What's at stake: Fintechs are increasingly looking to own the bank regulation relationship directly instead of connecting to sponsor banks.
• Expert quote: "Block has not signaled tokenization plans and its stated digital asset focus remains bitcoin, with stablecoins adopted more reluctantly on customer demand." —KBCM analysts
  

Block CEO Jack Dorsey, who has been bullish on crypto for years, is throwing his hat in the ring for a trust charter to offer custody for both bitcoin and stablecoins through his company.

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Block announced after market close on Tuesday that it has submitted an application to the Office of the Comptroller of the Currency to establish a national trust bank called Builders Bank and Trust. The charter would be separate from the company's current ILC charter, which powers Square Financial Services.

The charter application is the latest in a series of requests from fintechs and traditional financial firms to the OCC for trust charters focused on managing digital assets. Block made its announcement on the same day Chime announced it would be acquiring one of its longtime sponsor banks for its charter.