Block Adds Proof-of-Reserves for 8,883 Bitcoin, Expands Cash App and Bitkey Features
Summary
- Block said it has adopted proof-of-reserves for its 8,883 Bitcoin, worth about $681.4 million.
- Block also unveiled the launch of hardware wallet Bitkey, automatic Cash App conversion into Bitcoin, and a 5%% Bitcoin cashback feature for Square merchants.
- The industry interpreted Block’s moves as a strategy to expand Bitcoin as a means of payment and storage and to build trust with both institutional and retail users.
Forecast Trend Report by Period
Block is stepping up transparency around its Bitcoin holdings while expanding payment and wallet features to widen the cryptocurrency’s use.
Coinpaper reported on April 28 that Jack Dorsey-led Block has adopted proof-of-reserves for its Bitcoin holdings. The system lets users directly verify the assets through on-chain signatures.
The proof-of-reserves system covers Block’s 8,883 Bitcoin, worth about $681.4 million. That makes Block the world’s 14th-largest corporate holder of Bitcoin.
Proof-of-reserves is designed to let users confirm whether a company holds the assets it says it does without relying on trust alone. Major crypto platforms have adopted the approach as demands for transparency from exchanges and companies increased after the 2022 collapse of FTX.
Block also announced a broad set of Bitcoin-related features. The company launched Bitkey, a hardware wallet with a touchscreen, and added a feature for some Cash App users in select regions that automatically converts payment amounts into Bitcoin. It is also introducing a 5% Bitcoin cashback feature for Square merchants.
Industry participants interpret the moves as part of a strategy to expand Bitcoin beyond an investment asset into a means of payment and storage. The proof-of-reserves rollout is also seen as an effort to build trust with institutional and retail users.
Minseung Kang
minriver@bloomingbit.ioBlockchain journalist | Writer of Trade Now & Altcoin Now, must-read content for investors.
