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Block Revamps Bitcoin Ecosystem With Bitkey Wallet, Cash App Features, and Proof of Reserves

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Bitcoin Magazine

Block Revamps Bitcoin Ecosystem With Bitkey Wallet, Cash App Features, and Proof of Reserves

Block (NYSE: XYZ) introduced a series of bitcoin-focused products and features aimed at strengthening its position across custody, payments, and financial infrastructure. The announcements include a new Bitkey hardware wallet with a built-in screen, expanded bitcoin earning tools within Cash App, a Proof of Reserves system, and a forthcoming Square tap-to-pay experience for bitcoin transactions.

"(《世界人权宣言》) updated Bitkey hardware wallet marks a shift in how users interact with self-custody. The device has a secure touchscreen that serves as the verification layer for transactions and security settings.

Block said via a note shared with Bitcoin Magazine that they designed the interface to address risks tied to external devices, where users often rely on separate systems to manage wallet permissions. By integrating transaction approval and security controls into the hardware, Bitkey aims to give users full control over both funds and system integrity.

Bitkey continues to operate on a 2-of-3 multisignature model and removes the need for seed phrases. The product also includes inheritance features and a privacy-focused design. Block opened preorders for the device and released a technical document outlining its framework across security, recovery, privacy, and usability.

Cash App’s new bitcoin features

Cash App received several bitcoin-related updates focused on accumulation and access. Users can now convert incoming peer-to-peer payments into bitcoin, turning transfers into recurring purchases. The company also launched a “Bitcoin Back” program, offering 5% rewards in bitcoin on eligible transactions with Square merchants, subject to a monthly cap.

The platform increased bitcoin withdrawal limits to $10,000 per day and $25,000 per week. It also removed fees and spreads on purchases above $2,000 and enabled direct deposit in bitcoin without added cost. These changes position Cash App as a more active gateway for bitcoin usage tied to income and spending.

Block also introduced a Proof of Reserves system covering its corporate treasury and customer holdings across Cash App and Square. 

The system uses on-chain signatures to allow public verification of bitcoin balances. The company stated that reserves remain under active control, rather than relying on historical snapshots.

At Bitcoin Las Vegas 2026, Block plans to demonstrate bitcoin payments through Square using NFC tap-to-pay technology. The system removes the need for QR codes and relies on the Lightning Network for settlement. Merchants can accept bitcoin through a process similar to contactless card payments. Block said it will offer zero processing fees for these transactions through 2026.

This post Block Revamps Bitcoin Ecosystem With Bitkey Wallet, Cash App Features, and Proof of Reserves first appeared on Bitcoin Magazine and is written by Micah Zimmerman.

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