Block Moves to Start Its Own Bitcoin Custody Bank

Block recently filed an application to open a new institution called Builders Bank and Trust. If regulators give the green light, the company will operate as an uninsured national trust bank. This setup would place the bank under direct federal supervision, offering a formal structure for managing digital assets.

The proposed bank aims to focus on custody and fiduciary services for bitcoin and stablecoins. By seeking a national charter, Block is looking to establish a secure, regulated environment for holding these assets rather than relying on third party providers.

This move shows that major fintech players are still pushing to integrate digital assets directly into the traditional banking system. Investors should watch for updates on the federal approval process, as it could signal a shift in how companies handle large scale crypto custody.