Block's payment app Cash App has begun supporting USDC stablecoin transfers, covering Ethereum, Solana, Polygon, and Arbitrum. According to the platform, this service is currently free of charge, but it is not yet available to users in New York State. Users must complete identity verification and are subject to transaction limits.
USDC will be automatically converted to USD upon receipt.
Unlike some similar products, Cash App does not display received stablecoins as a separate crypto asset holding indefinitely. Once a user receives USDC, the system automatically converts it into a regular US dollar balance for everyday payments or transfers.
This design is closer to a payment tool than a crypto asset account. In contrast, PayPal's Venmo displays PYUSD alongside other digital assets in a crypto tab.
Shift from Bitcoin-first to multi-chain payments
Cash App has a long history of expanding its payment capabilities around Bitcoin. Under Jack Dorsey's leadership, Block has continued to invest in Bitcoin mining equipment, the self-custodied wallet BitKey, and payment products based on the Lightning Network.
In March of this year, Square, Block's payment processing platform, enabled Bitcoin payments by default for US merchants. Previously, merchants could also choose to automatically convert bank card sales revenue into Bitcoin.
The addition of USDC means that Block's payment system now accommodates both Bitcoin and stablecoins. Previously, Cash App stated when introducing stablecoin payments that this feature was intended to provide users with a faster and lower-cost payment option, but the product design still adhered to a "Bitcoin-first" approach.
Dorsey has criticized the stablecoin model.
It's worth noting that Jack Dorsey publicly criticized stablecoins earlier this year, saying the model might just be "moving from one gatekeeper to another." However, he also acknowledged that user demand for such products is rising.
Cash App's launch of multi-chain USDC sending and receiving functionality demonstrates that while maintaining its Bitcoin strategy, Block.com is also responding to the increasing competition in stablecoin payments. Following the passage of federal stablecoin legislation in the United States last year, competition in the relevant market is intensifying.
Additional information:As of March 31, Block held 9,032 bitcoins, with a value of approximately $675 million, according to the article. According to Bitcoin Treasures, Block is the 14th largest publicly traded company holding bitcoins globally.
