Jack Dorsey's Block Applies for New Bank Charter for Bitcoin

Block, the fintech company led by Jack Dorsey, is seeking a special purpose bank charter called Builders Bank. If approved, the new bank would bring together all the Bitcoin custody services that Block currently runs across more than 50 different state money transmitter licenses.

Streamlining these operations under a single national charter could save the company significant time and money on compliance. It also shows a growing trend of major financial technology firms seeking direct regulatory approval to hold digital assets securely for their customers.

Traders and industry watchers should keep an eye on how regulators respond to this application. A successful approval might pave the way for other crypto focused companies to follow the same path, changing how digital currencies are held and managed in the United States.