Block has filed an application with the OCC to charter Builders Bank & Trust, a national trust bank that would hold
BTC and stablecoins under federal supervision — no deposits, no loans, no resemblance to anything your grandmother banked at.This isn't exactly blazing a trail. Ripple has conditional approval for a similar charter; Circle and BitGo have already crossed the finish line. Kraken's parent and crypto infrastructure firm Zerohash are in the queue too. The industry that once ran from regulators is now filling out their paperwork voluntarily.
Block's digital asset strategy lead Lee Woolley is set to run the new bank, leaning on the company's experience with Square Financial Services. Turns out the best way to custody other people's Bitcoin is with a federal address on your letterhead.
Via CoinDesk.
Cointelegraph