We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
XYZ Files Application to Establish Builders Bank for Custody Services
Read MoreHide Full Article
Key Takeaways
Block applied to establish Builders Bank, an uninsured national trust bank under OCC supervision.
Builders Bank to provide custody and fiduciary services for bitcoin and stablecoins without taking deposits.
XYZ is expanding regulated financial services as Square Financial Services brings more payments in-house.
Block (XYZ - Free Report) 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%.
View the Zacks #1 Rank List
Image: Shutterstock
XYZ Files Application to Establish Builders Bank for Custody Services
Key Takeaways
Block (XYZ - Free Report) 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%.
Image Source: Zacks Investment Research
Stocks to Consider
Some better-ranked stocks from the internet-software sector are BILL Holdings, Inc. (BILL - Free Report) and MongoDB (MDB - Free Report) , 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.