Cash App launches fee-free USDC transactions across major blockchains, expanding its services beyond Bitcoin.
Cash App Expands Features with USDC Support
Cash App has broadened its services by enabling fee-free transactions for the USDC stablecoin across multiple blockchain networks, including Ethereum, Solana, Polygon, and Arbitrum. This development marks a shift for the payment platform, which previously focused solely on Bitcoin during Jack Dorsey's tenure.
The platform's new capability allows users to send and receive USDC without incurring transaction fees, enhancing its multi-chain functionality. Notably, Cash App automatically converts any stablecoin received into U.S. dollar balances, differing from competitors like Venmo, which keeps stablecoin holdings in a separate section of the app.
Despite this expansion, stablecoin access remains limited for users in New York, who must complete identity verification and adhere to transaction limits. These measures reflect Block's cautious approach in a competitive market, especially following recent federal legislation on stablecoins.
Although Dorsey has expressed skepticism about stablecoins, suggesting they merely transfer control from one entity to another, he acknowledges the growing demand for such services. His advocacy for Bitcoin as an open financial protocol remains strong, and the company has continued to invest heavily in Bitcoin-related projects, including mining hardware and the BitKey wallet.
Earlier this year, Square, a subsidiary of Block, transitioned to a default Bitcoin payment system for U.S. sellers, facilitating instant settlements via the Lightning Network. This move aligns with Cash App's recent launch of stablecoin payments, which are promoted as a fast and cost-effective transaction method across preferred networks. Miles Suter, Block's Bitcoin Product Lead, emphasized that while stablecoins are a valuable addition, the platform will continue to prioritize Bitcoin.
As of Wednesday, Block's stock was trading at around $71.55, reflecting a 3.5% increase for the day. Year-to-date, the company’s shares have risen nearly 10%, contrasting with a decline of over 14% in Bitcoin’s value, which currently stands at approximately $74,800. Block holds 9,032 Bitcoin valued at $675 million, ranking it as the 14th largest publicly traded corporate holder of Bitcoin, according to Bitcoin Treasures.
