Jack Dorsey’s Block to partner with Coinbase and CashApp for self-custody wallet as CEXes face scrutiny

Jack Dorsey’s American multinational technology conglomerate, Block, has revealed plans to launch a Bitcoin (BTC) self-custody wallet in collaboration with Coinbase Exchange and CashApp mobile payment service.

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Jack Dorsey’s Block to collaborate with Coinbase and CashApp

Jack Dorsey’s Block has announced plans to launch a public beta of its Bitcoin self-custody wallet in collaboration with two powerhouse names, CashApp and Coinbase.

While the product will start in the public beta phase, users will be able to buy cryptocurrency from both CashApp and Coinbase once the wallet officially launches.

The self-custody wallet, christened ‘BitKey,’ is a Bitcoin hardware wallet designed by Dorsey’s Block company. Noteworthy, Block was formerly known as Square, a corporate name change meant to reflect the company’s focus on not only cryptocurrency but also a wide range of business lines. Nevertheless, Square continues to represent Block’s Seller business.

BitKey business executive Lindsey Grossman commented on the planned launch, reassuring prospective users of protection amidst a turbulent market where crypto exchanges are constantly under attack. In her words:

Our strong belief is that self-custody is the best place to hold and manage your Bitcoin…If anything goes wrong with a custodial platform, you know that—this industry has had a lot of ups and downs—you’re protected.

As the wallet is still unavailable to the public, BitKey developers have invited interested persons to participate in the external beta testing phase. To do so, they have to fill out an application. Sign-ups are ongoing, with Coinbase exchange promising participants the chance to experience “a game-changing feature” where you can effortlessly move your Bitcoin from centralized exchanges to the secure Bitkey self-custody wallet.

It remains unknown when the Bitcoin self-custody wallet will be released, but Grossman hinted at a timeline within the year.

Coinbase champions Block’s BitKey wallet, citing the goal to power the Bitcoin economy

Coinbase also advertised the deal in an official blog, calling it a “global partnership with Block’s BitKey wallet.” An excerpt from the announcement reads:

Coinbase has entered into a global partnership with Bitkey, Block’s self-custody Bitcoin wallet. This partnership will integrate Coinbase Pay’s ability to transfer existing bitcoin and buy/sell bitcoin powered by Coinbase in the Bitkey self-custody wallet, which includes a mobile app, hardware device, and set of recovery tools, allowing customers to easily own and manage their bitcoin.

According to Coinbase, the BitKey partnership will span six continents, comprising the US, Canada, the UK, Brazil, and Australia, among other global markets where Coinbase and Bitkey serve customers. It will also feature a mobile app, a hardware device, and a set of recovery tools as part of a shared vision to join customers of the two platforms across global markets. 

While Coinbase aims to bring over one billion people into crypto, BitKey wants to “empower the next 100 million people to truly own and manage their money with Bitcoin.” The self-custody wallet comes at an opportune time when centralized exchanges (CEXes)or custodians face scrutiny by the US Securities and Exchange Commission (SEC). To put this in perspective, Binance exchange users were spooked by the recent regulator attack on the exchange and its CEO Changpeng Zhao, causing users to move their holdings from the exchange to self-custodies such as Trust wallet to avoid catastrophes akin to the implosion of crypto exchange FTX where users’ funds were locked up.