Square building DeFi platform business based on Bitcoin

Payments services company Square has announced plans to create a new business focused on making an “open developer platform” in order to provide non-custodial, decentralised financial services.

The company’s CEO Jack Dorsey tweeted:

Dorsey also said that, like its new Bitcoin hardware wallet, the company plans to develop a  completely transparent business.

“Open roadmap, open development, and open-source,” he said.

Dorsey added that Strategic Development Lead Mike Brock will act as a leader of the team that will combine the efforts of CashApp, Seller and Tidal in the same goal of decentralised financial services.

It’s no secret that Dorsey is a huge Bitcoin advocate. Recently he said he would even leave Square or Twitter should Bitcoin’s development become more vital.

“Bitcoin changes absolutely everything,” he gushed.

“I don’t think there is anything more important in my lifetime to work on. If I were not at Square or Twitter, I would be working on Bitcoin.

“If [Bitcoin] needed more help than Square or Twitter, I would leave them for Bitcoin. But, I believe both companies have a role to play.”

Square lost $20 million on Bitcoin in previous quarter

Dorsey also recently admitted that Bitcoin makes up 5% of Square’s total holdings. That also means  the company had lost around $20 million on Bitcoin in the previous quarter.

The decision to enter the crypto hardware sector came after the company announced it had generated $5.06 billion in overall revenue in the first quarter of this year. Approximately $3.51 billion of that revenue was attributed to Bitcoin.

According to Nasdaq, entrance into the crypto space has helped Square add new users and to monetise them thanks to its digital payments and digital wallet services.

The San Francisco-based company bought $170 million worth of Bitcoin at the end of the last year, followed by a $50 million Bitcoin purchase during the second quarter of 2020.