📊 Jack Dorsey’s Block is set to open a bank—doing just one thing: Bitcoin custody
This week, Jack Dorsey’s Block filed an application with the U.S. Office of the Comptroller of the Currency (OCC) to open a national trust bank called Builders Bank & Trust. The bank does not take deposits, does not make loans, and does not offer FDIC deposit insurance—it will do just one thing: custody Bitcoin and stablecoins.
Dorsey is well known. He founded Square, which later changed its name to Block, and sold Twitter to Musk. Over the years, he has consistently bet on Bitcoin. Bitcoin sits on Block’s balance sheet, and Cash App has also been selling coins. Now he wants to extract the custody business from state-by-state licensing and bring it under a federal license.
With a single national license, he can avoid the hassle of going through procedures in all fifty states one by one. If you’re in the custody business, this is the most convenient route.
But Block isn’t the first to do this. Ripple has already passed conditional approval. Circle and BitGo have completed final review. Kraken’s parent company Payward and ZeroHash are still in the queue. Everyone is heading down this road.
Circle just launched its own Arc public chain, and BitGo is an established legacy player in custody. Dorsey is moving in right now, betting that this line of business is heading toward greater compliance. Custody will eventually become infrastructure. Whoever gets a national license first gets to plant their flag first.
The real point of interest, though, is custody itself. Custody is priced based on scale and is a business that keeps generating repeat inflows—larger customers are the ones who become more dependent on you. For bank-level Bitcoin custody, you charge both a scale-based fee and a “trust tax.”
Dorsey has been saying for years that Bitcoin is the native currency of the internet. Now he has put that line into an application for a bank license.
#中本聪国际社区Baoluo币商资本 #财经 #Bitcoin
This week, Jack Dorsey’s Block filed an application with the U.S. Office of the Comptroller of the Currency (OCC) to open a national trust bank called Builders Bank & Trust. The bank does not take deposits, does not make loans, and does not offer FDIC deposit insurance—it will do just one thing: custody Bitcoin and stablecoins.
Dorsey is well known. He founded Square, which later changed its name to Block, and sold Twitter to Musk. Over the years, he has consistently bet on Bitcoin. Bitcoin sits on Block’s balance sheet, and Cash App has also been selling coins. Now he wants to extract the custody business from state-by-state licensing and bring it under a federal license.
With a single national license, he can avoid the hassle of going through procedures in all fifty states one by one. If you’re in the custody business, this is the most convenient route.
But Block isn’t the first to do this. Ripple has already passed conditional approval. Circle and BitGo have completed final review. Kraken’s parent company Payward and ZeroHash are still in the queue. Everyone is heading down this road.
Circle just launched its own Arc public chain, and BitGo is an established legacy player in custody. Dorsey is moving in right now, betting that this line of business is heading toward greater compliance. Custody will eventually become infrastructure. Whoever gets a national license first gets to plant their flag first.
The real point of interest, though, is custody itself. Custody is priced based on scale and is a business that keeps generating repeat inflows—larger customers are the ones who become more dependent on you. For bank-level Bitcoin custody, you charge both a scale-based fee and a “trust tax.”
Dorsey has been saying for years that Bitcoin is the native currency of the internet. Now he has put that line into an application for a bank license.
#中本聪国际社区Baoluo币商资本 #财经 #Bitcoin
