Block has introduced an on-chain proof-of-reserves system covering its corporate Bitcoin holdings and key consumer products, expanding its push for transparency in digital asset custody.
Summary
- Block has enabled on-chain proof of reserves, allowing public verification of its 8,883 BTC holdings across its treasury, Cash App, and Square.
- The firm said users can independently confirm balances through cryptographic signatures, as it expands transparency following industry moves after FTX’s collapse.
According to Block, users can independently verify its Bitcoin reserves through cryptographic signatures published on-chain, allowing public confirmation of balances tied to its treasury, Cash App, and Square.
“People shouldn’t have to trust that their bitcoin is there; they should be able to verify it,” Block said in a X post.
Company disclosures show the system is designed to validate control over 8,883 BTC, valued at about $681.4m, which places Block among the largest corporate Bitcoin holders. The firm added that the reserves are “actively controlled, not just historically observed,” pointing to real-time verification rather than static snapshots.
Adoption of proof-of-reserves gained traction after the collapse of FTX in November 2022, when several exchanges moved to publish verifiable holdings to reassure users about asset backing. Platforms including Binance, Kraken, OKX, Bitfinex, and Bitget have since implemented similar disclosures.
Debate over transparency and security persists
Not all industry participants support the approach. Michael Saylor said in May 2025 that publishing proof-of-reserves can introduce security risks by exposing sensitive wallet data.
“It actually dilutes the security of the issuer, the custodians, the exchanges and the investors,” he said at the time, adding, “It’s not a good idea. It’s a bad idea.”
Strategy, the largest corporate holder of Bitcoin, has not adopted proof-of-reserves disclosures despite holding significantly more BTC than Block.
Alongside the verification rollout, Block has expanded its Bitcoin product suite. The company introduced an updated Bitkey hardware wallet with a touchscreen for transaction verification, while adding a feature on Cash App that lets selected users automatically convert incoming payments into Bitcoin.
Merchant-facing updates include 5% Bitcoin cashback rewards for purchases made through Square, paired with a fivefold increase in withdrawal limits to $10,000 per day and $25,000 per week.
Earlier efforts by Block to widen Bitcoin access included plans to revive the faucet model through btc.day, a campaign first outlined in April 2026. Company updates tied the initiative to education and onboarding, echoing early distribution methods used in 2010 by developer Gavin Andresen, although Block has not disclosed how much BTC will be distributed or who will be eligible.
Jack Dorsey has repeatedly framed Bitcoin as a payment network, stating in prior remarks that wider adoption is necessary to support Satoshi Nakamoto’s original design for peer-to-peer electronic cash.
