Home Bitcoin Cash Square is unleashing crypto onto more of its user base

Square is unleashing crypto onto more of its user base

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jack dorsey
In
this Thursday, Nov. 19, 2015, file photo, Twitter CEO Jack Dorsey
is interviewed on the floor of the New York Stock
Exchange.

Richard
Drew/AP


  • Square, the mobile-payments company, has been allowing
    some of its users to buy and sell bitcoin on its Cash
    App.
  • The company said on Tuesday it was rolling out the
    service to additional users.

Square is increasing the number of people eligible to buy and
sell bitcoin on its Cash App, the company founded by Twitter CEO
Jack Dorsey announced on Twitter Tuesday.

The company has been running a trial on Cash App, a rival to
Venmo, that has allowed only a small number of users to purchase
bitcoin.

Here’s the announcement of the expansion on Cash App’s Twitter
account:

A person familiar with the expansion told Business Insider it
represents a “noticeable increase.”

The expansion of the service comes after some major milestones in
the crypto world. Since news broke on November 14 of Square’s
foray into bitcoin, two major US exchanges announced the specific
launch date for their respective bitcoin futures contracts and
the total market-cap for the crypto-market blew past $300
billion.

Square said in mid-November it added the feature to Cash App
because users asked for it.

“We believe cryptocurrency can greatly impact the ability of
individuals to participate in the global financial system, and
we’re excited to learn more here,” the company said in the
statement.

At first, Wall Street responded positively to the news. It sent
the stock up to an all-time high near $50 per share by November
24. The stock ended the trading day Tuesday at $37.60 per share.

A full roll-out of the feature would put Square up against
cryptocurrency exchanges such as Coinbase and Gemini.

A research note penned by Credit Suisse analysts Paul Condra and
Mrinalini Bhutoria said the move could be a tailwind for the
company, despite some hurdles. Here’s the bank (emphasis ours):

“Given SQ’s tendency to move judiciously into new technologies,
we expect it will do the same with bitcoin purchases. We believe
the largest risk is regulation, which could limit its ability to
provide the service or outright ban it. SQ is also exposed to
liquidity and counterparty risk as it must source bitcoin for
users either by pre-buying or using an exchange. Despite
these risks, the upside could be significant if crypto currencies
become more mainstream.”

The venture, Credit Suisse said, could ultimately translate into
$30 million in additional revenues.



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