Block, Inc (XYZ) Applies for Bank Charter to Expand Digital Assets

On September 8, 2023, Block, Inc. (NYSE: XYZ) filed an application with the Office of the Comptroller of the Currency (OCC) to charter Builders Bank & Trust, N.A. This federally regulated bank could enhance Block's infrastructure for custody and services involving bitcoin and stablecoins. By establishing a regulated custody operation, Block aims to attract larger financial institutions and expand its customer base. Approval from the OCC remains critical, with potential regulatory hurdles posing risks that could impact Block's digital asset growth strategy.