Block Launches Bitcoin Proof-of-Reserves for Cash App and Square

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This article was first published on The Bit Journal. Digital payments firm Block has launched a bitcoin proof-of-reserves project for its corporate Bitcoin reserves and core platforms such as Cash App and Square. The development is part of a broader trend towards transparency as digital currency companies increasingly enable on-chain verification of assets.

Bitcoin Proof-Of-Reserves Ensures Transparent Asset Verification

The company made the announcement during an event in Las Vegas, emphasising customer empowerment. Block stated that users should not have to trust, but rather be able to verify that their Bitcoin is there. With its bitcoin proof-of-reserves system, customers can check their holdings via onchain cryptographic signatures, ensuring they are actively managed rather than simply recorded.

The key component of this model is Block’s Bitcoin treasury, which currently holds 8,883 BTC worth about $681 million. By adopting a bitcoin proof-of-reserves model, it seeks to demonstrate that these assets are fully backed and available, with a greater level of confidence in its balance sheet.

https://t.co/pkLmTXnxkG

— Bitcoin at Block (@BitcoinatBlock) April 27, 2026

FTX Collapse Drives Crypto Transparency Adoption

Bitcoin proof-of-reserves became more popular after the FTX collapse in November 2022, which highlighted significant issues with transparency in the industry. Following this, major exchanges such as Binance, Kraken, OKX, Bitfinex and Bitget have also taken similar actions to demonstrate their financial stability.

However, not all industry leaders support bitcoin proof-of-reserves. The largest corporate Bitcoin holder, Strategy, has not adopted these measures. The company’s executive chairman, Michael Saylor, has previously suggested that proof-of-reserves may pose security risks by revealing confidential information.

I asked @saylor if @MicroStrategy has any plans to publish on-chain proof of reserves

His answer will SHOCK you

“It’s a bad idea.”

– Security Risk
– Irrelevant without also having Big 4-audited liabilities

Check it out 👇 pic.twitter.com/tIxUckgbEp

— Mitchell Askew (@MitchellAskew) May 27, 2025

Bitkey Wallet Adds Touchscreen Verification Support

In addition to transparency moves, Block has introduced new Bitcoin features. This includes a new Bitkey hardware wallet with a touchscreen verification feature. Meanwhile, Cash App now offers eligible users the option to automatically convert payments to Bitcoin, helping to drive crypto adoption.

Block is also rolling out a 5% Bitcoin cash back program for Square merchants, which it hopes will accelerate the use of Bitcoin in payments. The company has also considerably raised withdrawal caps, allowing up to $10,000 per day and $25,000 per week.

Dorsey Emphasizes Bitcoin As Global Currency

These advancements are consistent with the larger vision of Block CEO Jack Dorsey, a longtime supporter of Bitcoin adoption. He has repeatedly emphasized on the importance of the prevalence of Bitcoin payments to complete the initial vision of Satoshi Nakamoto of a decentralized peer-to-peer financial system.

In the context of increased competition, the combination of bitcoin proof-of-reserves and user-centric innovationgs offered by Block may have a significant role in the promotion of trust and adoption throuhout the crypto ecosystem.

Conclusion

The integration of both transparency and usability in Block is a strong indication that the company has changed its strategic direction to become accountability-led in its growth. By combining bitcoin proof-of-reserves with useful payment services, the company is not just enhancing user trust, but also speeding up the acceptance of Bitcoin as a viable and commonly used financial instrument.

Summary

Block launched a bitcoin proof-of-reserves system, allowing users to verify its 8,883 BTC holdings onchain across Cash App and Square.
The move follows the FTX collapse-driven push for transparency, though Strategy and Michael Saylor remain critical over potential security risks.
Block also introduced new Bitcoin features, including a Bitkey wallet, auto-conversion on Cash App, cashback via Square, and higher withdrawal limits to boost adoption.

Glossary of Key Terms

Onchain Verification
Checking data directly on the blockchain.

Cryptographic Signatures
Digital proof of asset ownership.

Bitcoin Treasury
Company’s total Bitcoin holdings.

Cash App
Block’s mobile payment and crypto app.

Square
Block’s merchant payment platform.

Bitkey Wallet
Hardware wallet for secure Bitcoin storage.

FTX Collapse
2022 exchange failure that shook crypto trust.

Frequently Asked Questions About Bitcoin Proof-Of-Reserves

1. What is bitcoin proof-of-reserves?

It is a transparency system that allows users to verify a company’s Bitcoin holdings onchain using cryptographic methods.

2. How does bitcoin proof-of-reserves work?

It works through onchain cryptographic signatures that confirm Bitcoin holdings are actively controlled and fully backed.

3. Which Block services use this system?

The system covers Block’s Bitcoin treasury as well as services like Cash App and Square.

References

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Disclaimer

The article is purely informational and it is not a financial, investment, or a trading advice. Cryptocurrencies are extremely risky and volatile. Before investing, the readers are to conduct personal research and seek the advice of a qualified financial expert.

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The Bit Journal

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