Block applies for National Trust Bank Charter, paving the way for Bitcoin and stablecoin integration

Block, the fintech company founded and led by Jack Dorsey, has announced it is applying for a National Trust Bank Charter from the Office of the Comptroller of the Currency (OCC) within the U.S. Department of the Treasury. If approved, Block will be able to custody Bitcoin, stablecoins, and other digital assets directly within the federal banking system, marking a significant step in integrating crypto into mainstream financial infrastructure.

What is a National Trust Bank Charter?

A National Trust Bank Charter allows the approved organization to conduct trust activities at the federal level, including:

• Asset custody: Safely holding customer assets, including digital assets like Bitcoin and stablecoins
• Fiduciary management: Managing assets on behalf of customers with the highest legal responsibility
• Payment services: Processing payments and money transfers

Unlike a full commercial banking charter, a trust charter does not permit deposit-taking or lending. However, it still places the organization under OCC supervision—the federal banking regulator.

Why does Block need this charter?

Block has built a broad financial ecosystem through Square (payments for businesses) and Cash App (digital wallet for consumers). Both platforms have needs for digital asset custody:

1. Bitcoin in Cash App

Cash App allows users to buy, sell, and send Bitcoin. However, current Bitcoin custody relies on third-party partners. With a trust charter, Block can self-custody Bitcoin, reducing costs and increasing control.

2. Stablecoins for businesses

Square serves millions of small businesses. As stablecoins become a common payment method, Block needs the ability to custody USDC, USDT, and other stablecoins for businesses.

3. Self-custody integration

Jack Dorsey has long championed the “self-custody” philosophy—users controlling their own assets. A trust charter allows Block to provide professional custodial services without relying on third-party exchanges like Coinbase.

Regulatory context

Block’s decision comes as U.S. crypto policy is changing rapidly:

OCC under the new administration

After the new administration took office in 2025, the OCC issued new guidance encouraging banks to offer digital asset services. Many fintech companies are taking advantage of this opportunity to apply for charters.

Competition with Coinbase and Paxos

Coinbase already holds a trust charter from New York (BitLicense) and is applying for a federal charter. Paxos also has a trust charter. Block wants to ensure it doesn’t fall behind in this race.

Stablecoins and the GENIUS Act

The GENIUS Act (Guiding and Establishing National Innovation for U.S. Stablecoins) is being considered by Congress, creating a clear legal framework for stablecoins. Having a banking charter will help Block better meet regulatory requirements.

Market impact

1. Legitimizing crypto

When a major company like Block (market cap ~$40 billion) applies for a banking charter, it sends a strong signal that crypto is becoming part of the mainstream financial system.

2. Competition with traditional banks

Traditional banks like BNY Mellon and State Street already offer digital asset custody services. Block’s entry will create additional competition, especially in the SME and consumer segments.

3. Model for other fintech companies

If Block succeeds, other fintech companies (Stripe, PayPal, Revolut) may follow suit, applying for banking charters to integrate crypto more deeply.

Perspectives from Vietnam and Japan

Vietnam

Vietnam has the highest crypto adoption rate in Southeast Asia (approximately 21% of the population according to surveys). However, the legal framework for digital assets remains unclear. If Block’s model succeeds in the U.S., it could serve as a model for Vietnam to consider.

Vietnamese businesses using Cash App or Square to receive international payments could benefit from direct crypto custody services, reducing conversion costs and intermediaries.

Japan

Japan has one of the clearest crypto regulatory frameworks in Asia. The Japan Financial Services Agency (FSA) has licensed numerous crypto exchanges. Block could expand its crypto custody services to the Japanese market, where demand from businesses and institutional investors is growing.

Challenges ahead

1. Lengthy approval process

Obtaining a National Trust Bank Charter from the OCC typically takes 6-12 months, sometimes longer. Block must demonstrate risk management capabilities, AML/KYC compliance, and system security.

2. Ongoing supervision

After being granted the charter, Block will be subject to continuous OCC supervision, including regular audits and reporting. This increases operational costs but also enhances credibility.

3. Reaction from the crypto community

Some in the crypto community oppose large companies applying for banking charters due to concerns about centralization and surveillance. Jack Dorsey will need to balance regulatory compliance with decentralization philosophy.

Conclusion

Block’s application for a National Trust Bank Charter is a strategic move to integrate Bitcoin and stablecoins into mainstream financial infrastructure. If successful, it will serve as a model for other fintech companies to follow, while accelerating the legitimization of digital assets globally.

For the Vietnamese and Japanese markets, this move opens opportunities to access professional crypto custody services, reduce transaction costs, and build modern digital financial infrastructure.

---

Source: Block Pursues National Trust Bank Charter to Custody Bitcoin and Stablecoins — PYMNTS, September 2026