Block Inc. Aims to Secure U.S. Trust Bank License for Crypto Services
Jack Dorsey's payments company moves to operate as a regulated trust bank, deepening its crypto custody and stablecoin plans.
Block Inc., the financial services firm led by Jack Dorsey, has taken a major regulatory step by applying for a U.S. trust bank charter. The move signals the company's intention to offer Bitcoin custody, stablecoin issuance, and other digital asset services under the oversight of federal banking authorities, rather than relying on state-level licenses that vary widely.
Why a Federal Trust Charter Matters
A national trust bank charter would allow Block to operate across all 50 states with consistent rules, reducing the patchwork of compliance obligations. It also positions the company to act as a qualified custodian for institutional crypto clients, a critical function that many traditional banks are still hesitant to provide. The charter application, first reported by regulatory filings, covers plans to handle both Bitcoin and fiat-backed stablecoins.
- Regulatory clarity: A federal charter aligns Block with existing banking laws, potentially easing partnerships with mainstream financial institutions.
- Expanded custody offerings: Clients could store Bitcoin under the same legal protections afforded to traditional trust accounts.
- Stablecoin infrastructure: The charter supports Block’s ambition to issue and redeem stablecoins, competing with products like USDC and PayPal’s PYUSD.
“The trust bank model is the most direct path to bridging traditional finance and the digital asset ecosystem without reinventing the regulatory wheel,” said a former Office of the Comptroller of the Currency examiner familiar with the application.
If approved, Block would join a small but growing cohort of chartered crypto custodians that includes Anchorage Digital and Protego Trust. The move also reignites debate over whether crypto-native firms can meet the strict capital and risk-management requirements of federal banking oversight. For now, Dorsey’s company is betting that the answer is yes.