• EN

    • -+ 0.00%
    -+ 0.00%
    -+ 0.00%

    Learn Why The Bull Case For Block Stock Could Change Following OCC Trust Bank Application

    Simply Wall St·09/09/2026 05:24:17
    Listen to the news
    • Block has applied to the Office of the Comptroller of the Currency to create Builders Bank & Trust, N.A., an uninsured national trust bank that would offer federally supervised custody and fiduciary services for bitcoin, stablecoins and other digital assets, while not taking deposits or issuing loans.
    • The proposed charter would pull a portion of Block's existing digital asset custody activity into a single OCC regulated entity, which could change how the business manages compliance, operational risk and the cost of scaling crypto infrastructure.
    • With Builders Bank seeking OCC oversight for bitcoin and stablecoin custody, it is worth asking how this move reshapes Block's broader investment narrative.

    Scan how other regulated finance and crypto infrastructure players are positioning themselves by reviewing our hand picked 20 cryptocurrency and blockchain stocks that echo the same custody and compliance themes as Block's Builders Bank move.

    Block Investment Narrative Recap

    Owning Block means believing its two ecosystems, Cash App and Square, can keep deepening engagement while the firm manages credit and crypto volatility. The short term swing factor is execution in Cash App lending and monetizing its large user base, especially as management leans on proprietary data rather than traditional scores. The Builders Bank trust charter, if approved, would mostly tidy up existing crypto custody under one federal supervisor. That points more to compliance and risk management than a step change in earnings. The biggest near term risk remains credit and regulatory pressure across lending and digital assets.

    The announcement that Block is opening Cash App Score to external lenders through Nova Credit lines up closely with this story. Cash App already uses the scoring system across its own consumer lending products, with management citing higher approval rates at similar loss levels compared with traditional credit scores. Extending that same engine to outside lenders could deepen data moats, diversify fee streams and keep Cash App central to underwriting workflows where Block does not compete directly. It also concentrates execution risk around underwriting quality, regulatory scrutiny of data use and the durability of partner demand.

    Even so, there is a quieter pressure point in Block's model that could matter more than the headline news if ...

    Read the full Block narrative to see the case behind these numbers.

    Block's current analyst narrative points to revenues of US$33.7b and earnings of US$3.8b by 2029. That path assumes revenue expands by 10.5% per year and earnings climb by roughly US$3.4b from about US$357.1m today to reach the 2029 consensus level.

    Block's forecasts point to a $97.60 fair value compared with the $80.10 share price, a 22% potential upside to its current price.

    NYSE:XYZ 1-Year Stock Price Chart
    NYSE:XYZ 1-Year Stock Price Chart

    Exploring Other Perspectives

    For Block, the alternate narrative leans on aggressive lending expansion as a catalyst. The most optimistic analysts were already building in about US$38.1b of revenue and US$5.4b of earnings by 2029 before this Builders Bank news. You might see those forecasts as too rich or just the starting point, which is exactly why exploring a range of views matters.

    If you want a quick sense check on where Block might sit, compare this view with 8 other fair value estimates for Block.

    Decide For Yourself

    Don't just follow the ticker. Dig into the data and build a conviction that's truly your own.

    Looking For More Ideas Beyond Block?

    If you want to pressure test your view on Block against other opportunities, a quick pass through the Simply Wall St Screener can surface companies with very different risk and return profiles that still fit your checklist.

    • If you care most about valuation support and financial quality, compare Block with 49 high quality undervalued stocks that balance robust fundamentals with prices that sit below their Fair Value estimates.
    • If resilience matters more to you than excitement, stress test your portfolio against 82 resilient stocks with low risk scores that score well on volatility, balance sheet strength and business risk.
    • If you want steadier cash returns alongside growth stories like Block, line up its profile next to 6 dividend fortresses that pair higher yields with durable payout records.

    This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.