Jack Dorsey's Block Applies to U.S. Regulators to Launch Crypto Trust Bank
Fintech giant Block, led by Jack Dorsey, has applied to the OCC to establish Builders Bank & Trust to offer digital asset custody under federal regulation.
Fintech giant Block, led by Twitter founder Jack Dorsey, has taken a dramatic step toward integrating into the American banking system. The company has submitted a formal application to the Office of the Comptroller of the Currency (OCC) in the U.S. to establish a new federal bank called "Builders Bank & Trust." The planned bank will provide custody services for digital assets—including Bitcoin and stablecoins—under direct federal supervision.
The new bank will operate as a non-depository, non-lending trust bank, with the goal of consolidating all of the company's crypto and payment operations under a unified regulatory umbrella. Lee Walley, an executive with decades of experience in traditional banking and a former senior official at BNY Mellon, is slated to serve as president and CEO. The move is designed to directly connect Block's operational arms, including the Cash App payment application and its mining divisions, with the institutional infrastructure in the United States.
Growing Crypto Integration in U.S. Banking
Block's application does not exist in a vacuum; it is part of an unprecedented wave of crypto companies seeking a foothold in the banking system. Alongside firms like Revolut, Coinbase, and Ripple, the World Liberty Financial project—associated with the family of Donald Trump—stands out. It recently received conditional approval to establish a crypto-based trust bank, a step that drew sharp political criticism in Washington over concerns regarding potential conflicts of interest.
The crypto market reacted moderately to the news, with Bitcoin trading around the $79,500 level. However, analysts estimate that in the long term, this is a significant signal of the inevitable integration of digital currencies into the core of the U.S. banking infrastructure, which could pave the way for massive institutional capital inflows.
Historical Context and Dorsey's Defense of Elon Musk
Dorsey's name made headlines back in 2023 in a completely different context surrounding the social network he founded and its current owner, Elon Musk. After Musk faced intense criticism at the time for his decision to block non-registered users from viewing Twitter (X), Dorsey came to his surprising defense.
"Running Twitter is hard, I don't wish that pressure on anyone and trust the team is doing the best they can under the huge constraints they have," the founder and former CEO tweeted at the time, adding a jab at critics on the sidelines: "It's easy to criticize decisions from afar... that I am to blame for, but I know the goal is to see Twitter thrive, and it will happen."
