XYZ Files Application to Establish Builders Bank for Custody Services

Block XYZ has submitted an application to the Office of the Comptroller of the Currency (“OCC”) to establish Builders Bank & Trust, N.A., an uninsured national trust bank. The application remains subject to the OCC’s review and approval. Builders Bank would begin operations only after obtaining all necessary regulatory approvals.

If approved, it would operate as a federally regulated national trust bank under OCC supervision and provide custody and related fiduciary services for bitcoin and stablecoins. The charter would enable Block to conduct these activities through a consistent national framework as the business scales.

Builders Bank would be an uninsured, non-deposit-taking trust bank and would not accept deposits or make loans. The proposed charter would establish a federal supervisory framework for certain custody and related activities currently offered by Block.

The application follows Block’s broader expansion of regulated financial-services capabilities, including through its existing industrial bank, Square Financial Services. In the second quarter of 2026, eligible sellers maintaining at least $10,000 in Square Savings could earn 3.5% APY. Separately, Block noted in its second-quarter 2026 earnings that a larger deposit base could provide low-cost funding for future lending and reduce reliance on warehouse facilities and other funding sources.

Block has also been bringing payments infrastructure in-house. Square Financial Services processed its first Square acquiring transaction in June 2026 and plans to shift more Square and Cash App acquiring volume over time. In the second quarter, Cash App consumer-lending originations rose 59% year over year to $18.9 billion, highlighting the scale of Block’s financial-services operations.

Over the past three months, shares of this Zacks Rank #3 (Hold) company have rallied 18% compared with the industry's growth of 14.5%.

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Stocks to Consider

Some better-ranked stocks from the internet-software sector are BILL Holdings, Inc. BILL and MongoDB MDB, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks Rank #1 stocks here.

The Zacks Consensus Estimate for BILL’s fiscal 2027 earnings per share (EPS) has moved 37 cents northward to $3.68 over the past month.

The consensus estimate for MDB’s fiscal 2027 EPS has moved up 17 cents to $6.37 over the past week.

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This article originally published on Zacks Investment Research (zacks.com).

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