Block files to create federally supervised US crypto bank

Block, the fintech company founded by Jack Dorsey, has taken significant steps toward establishing itself as a U.S. cryptocurrency bank. The firm has filed with the Office of the Comptroller of the Currency (OCC) to create Builders Bank & Trust, N.A., an uninsured national trust bank. If approved, this entity will provide custody and fiduciary services for bitcoin and stablecoins under federal supervision, marking a departure from state-level licensing. This move underscores Block’s ambition to integrate more deeply into the cryptocurrency financial infrastructure. The filing is currently under OCC review, and the new bank cannot commence operations until it receives regulatory approval and fulfills the necessary requirements. Unlike traditional commercial banks, Builders Bank & Trust will not engage in deposit-taking or lending, which differentiates its operational model. The initiative could enhance institutional adoption of cryptocurrencies by providing federally regulated custody services. In prediction markets, this development appears to be influencing expectations for Bitcoin’s future price movements. The prospect of a major U.S. fintech obtaining a federal banking f...