Summary
- Cash App has launched fee-free transactions for the USDC stablecoin across Ethereum, Solana, Polygon, and Arbitrum.
- In contrast to Venmo, Cash App automatically converts received stablecoins to standard U.S. dollar balances.
- This update enhances the multi-chain functionality of Block's payment system, which has primarily centered on Bitcoin.
Cash App has initiated support for stablecoin transactions on platforms such as Ethereum and Solana, marking a significant advancement for the widely-used payment service that had previously focused exclusively on Bitcoin under the leadership of Jack Dorsey.
Along with the aforementioned blockchains, users of Cash App can send and receive Circle’s USDC on Ethereum's scaling networks, specifically Polygon and Arbitrum. Currently, these transfers incur no fees, as stated on the payments platform’s website.
Unlike some of its competitors, Cash App automatically converts stablecoins received by users into dollars, which appear as standard account balances. In contrast, PayPal’s Venmo keeps users’ holdings of its PYUSD stablecoin in a separate crypto tab alongside other digital assets.
As per Cash App’s website, stablecoins are not yet accessible to users in New York, and customers must verify their identity and adhere to transaction limits. These restrictions illustrate Block’s careful strategy in an increasingly competitive landscape, especially after the federal legislation on stablecoins was enacted last year.
Under Dorsey, a prominent advocate for Bitcoin, Block has invested heavily in mining hardware development and the BitKey self-custodial wallet, aligning with his long-term vision of positioning Bitcoin as "everyday money."
This year, Dorsey criticized stablecoins, suggesting they merely shift control from one gatekeeper to another, despite acknowledging the increasing customer demand for such technology. He has consistently valued Bitcoin as an open protocol for financial transactions.
In March, Square, the payments processor owned by Block, activated a feature that enables default Bitcoin payments for U.S. sellers, shifting from an opt-in model to one that offers immediate settlement using Bitcoin’s Lightning Network. When it launched in November, this service allowed merchants to convert card sales automatically into Bitcoin.
That month, Cash App announced its stablecoin payment feature, promoting it as a method for customers to execute quick, low-cost transactions, regardless of their preferred network. At that time, Miles Suter, Block’s Bitcoin Product Lead, referred to stablecoins as a “complementary option for our customers,” asserting that the platform will always prioritize Bitcoin.
On Wednesday, Block shares were trading at approximately $71.55, reflecting a nearly 3.5% midday increase according to Yahoo Finance. The company’s stock has appreciated by almost 10% year-to-date, while Bitcoin’s value has decreased by over 14%, bringing it to $74,800, based on data from CoinGecko.
As of March 31, Block owned 9,032 Bitcoin valued at $675 million on its balance sheet for investment purposes, ranking it as the 14th largest publicly traded corporate holder of Bitcoin, according to Bitcoin Treasures, just behind the estimated holdings of Trump Media & Technology Group.