Block and Chime Pursued New Banking Charters
Fintech firms seek to cut regulatory overhead by replacing state licenses with federal banking charters.
Updated on Sept. 28, 2026 in Financial Services
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Block filed an application on September 8, 2026, to establish Builders Bank & Trust as an uninsured national trust bank, while Chime announced its $590 million acquisition of Stride Bank on September 9, 2026. These moves mark a shift toward consolidation under federal oversight to manage digital-asset services.
Why it matters
Operators in the fintech space face significant compliance costs from maintaining dozens of individual state money-transmitter licenses. By moving to a federal charter or acquiring an existing bank, companies can consolidate operations, reduce third-party dependencies, and streamline fiduciary services.
Chime is acquiring Stride Bank for $590 million, a deal expected to close in the first half of 2027. Meanwhile, 23 of the last 40 bank charter applications submitted to the OCC involved digital-asset activities, highlighting a trend toward federal licensing for crypto-focused firms.
The players
Block
A financial technology company that provides payment, hardware, and digital wallet services globally.
Chime
A financial technology company that offers mobile banking services through partner banking institutions.
Lee Woolley
The appointed president and CEO of the proposed Builders Bank & Trust entity.
Office of the Comptroller of the Currency
The federal agency that charters, regulates, and supervises all national banks in the United States.
Stride Bank
An Oklahoma-based financial institution that provides banking services and infrastructure for fintech partners.
The details
Block’s proposed entity, Builders Bank & Trust, would operate as an uninsured national trust bank headquartered in Sioux Falls, South Dakota, to handle bitcoin and stablecoin custody without issuing traditional loans or accepting deposits. By leveraging a federal charter, Block aims to centralize its fiduciary duties and eliminate the cost of complying with 50 separate state-level licensing regimes. Simultaneously, Chime is acquiring Enid, Oklahoma-based Stride Bank to gain direct banking infrastructure.
Timeline
September 8, 2026: Block filed for a national trust bank charter.
September 9, 2026: Chime announced the acquisition of Stride Bank.
First half 2027: Expected closure of the Chime acquisition of Stride Bank.
First half 2027: Expected launch of a new stablecoin project by 21 global banks.
Market Landscape
The push by Block and Chime reflects a broader industry trend toward federal banking status to mitigate the complexities of multi-state compliance. This shift follows the pattern where fintech companies move to internalize banking infrastructure rather than relying on third-party partners.
Operators in digital finance should prepare for a potential regulatory environment where federal charters become the benchmark for operational scale. Business leaders should monitor these charter approval timelines, as they signal a decrease in the cost and complexity of offering custodial services.
The takeaway
The move toward national trust charters signifies a strategic pivot from high-cost state compliance to more efficient, centralized federal oversight. Evaluate your current reliance on third-party financial partners to determine if your volume warrants seeking an independent federal charter.
What happens next
The acquisition of Stride Bank by Chime is expected to conclude in the first half of 2027, and a new stablecoin project involving 21 global banks is also slated for launch during that same window.
Further reading
For broader trends in regulatory compliance, see the Financial Services section.
Source note: This article includes information reported by Startup Fortune.
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