Block Launches Live Bitcoin Proof-of-Reserves and Expands Cash App/Square BTC Access
Block, led by Jack Dorsey, has launched a live Bitcoin proof-of-reserves system to boost crypto custody transparency. The company says anyone can independently verify, via on-chain signatures, that the coins exist and remain under its active control.
Block reports holding 8,883 BTC (about $680m) covering both its treasury and key products, including Cash App and Square. By its stated metric, this would make Block the 14th-largest corporate Bitcoin holder.
The rollout also includes product and policy updates. Cash App users in select markets can automatically convert incoming payments into BTC. Square merchants can offer up to 5% Bitcoin cash-back. Block also raised withdrawal limits to $10,000 per day and $25,000 per week (up from the prior cap). Block introduced a new Bitkey hardware wallet with a touchscreen verification feature.
The broader trend follows the 2022 FTX collapse, when proof-of-reserves became a mainstream reassurance tool. Binance, Kraken, OKX, Bitfinex and Bitget adopted similar approaches, while MicroStrategy/Strategy has criticized the practice as potentially “dangerous.”
For traders, the direct price impact on BTC may be limited. However, renewed institutional-grade verification plus higher app liquidity (larger withdrawals) could support sentiment and encourage steadier positioning near BTCUSD levels.
Neutral
This news is primarily a transparency upgrade: Block’s live Bitcoin proof-of-reserves lets traders and auditors verify holdings on-chain. That can improve confidence in centralized custody and may reduce perceived counterparty risk.
In the short term, the announcement is unlikely to be a major BTC price catalyst because it doesn’t change total market supply and the company’s reported 8,883 BTC is not likely to move spot demand by itself. The main potential trading angle is sentiment—better verification standards plus more user access and liquidity via higher withdrawal limits on Cash App/Square could support steadier flows.
Over the longer term, if more custodians adopt real-time proof-of-reserves, it could strengthen institutional participation and normalize trust mechanisms after the FTX-era crackdown. Still, as reflected by MicroStrategy/Strategy’s skepticism, transparency tools may not uniformly translate into immediate price upside, keeping the net impact closer to neutral.