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


  • Jack Dorsey has revealed plans to debut a self-custody wallet in collaboration with CashApp and Coinbase exchange.
  • Users will be able to buy cryptocurrency from the Cash App and Coinbase once the wallet is officially launched.
  • Coinbase has advertised the partnership as part of a system to power the Bitcoin economy.
  • The move comes as custodial platforms like Binance and Coinbase face regulatory scrutiny, threatening the safety of user funds.  

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.

Also Read: BlackRock joins hand with Coinbase Custody for Bitcoin ETF application, undeterred by SEC vs Coinbase lawsuit

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.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Recommended content


Recommended Content

Editors’ Picks

Zilliqa price poised for a rally on positive on-chain data; bullish technical indicators

Zilliqa price poised for a rally on positive on-chain data; bullish technical indicators

Zilliqa price has broken above a falling wedge pattern, indicating a shift in market structure from bearish to bullish. Bullish divergence on the RSI and the Awesome Oscillator indicators signal a potential reversal and upward movement in ZIL price in the coming days.

More Cryptocurrencies News

MATIC sets for a rally as Polygon Foundation confirms the migration date

MATIC sets for a rally as Polygon Foundation confirms the migration date

Polygon (MATIC) price has broken above a falling wedge pattern, indicating a shift in market structure from bearish to bullish. The Polygon Foundation officially announced on Thursday that September 4 is the migration date for MATIC to POL.

More Polygon News

Top 10 crypto market movers as Bitcoin and Ethereum hold steady ahead of $1.8 billion options expiry

Top 10 crypto market movers as Bitcoin and Ethereum hold steady ahead of $1.8 billion options expiry

Bitcoin and Ethereum hold steady above $64,000 and $3,400 as $1.8 billion in options expire on Friday. WazirX hack of $230 million potentially linked to Lazarus Group ushers correction in Shiba Inu, among other assets. 

More Cryptocurrencies News

Bitcoin Weekly Forecast: Will BTC continue its bullish momentum?

Bitcoin Weekly Forecast: Will BTC continue its bullish momentum?

Bitcoin price increased by 5.5% this week until Friday after breaking above a descending trendline. Currently, it is trading slightly higher by 0.23% at $64,166. By Thursday of this week, U.S. spot Bitcoin ETFs observed cumulative positive inflows totaling $861.50 million.

More Bitcoin News

Bitcoin: Will BTC continue its bullish momentum?

Bitcoin: Will BTC continue its bullish momentum?

Bitcoin (BTC) price increased by 5.5% this week until Friday after breaking above a descending trendline. Currently, it is trading slightly higher by 0.23% at $64,166. By Thursday of this week, U.S. spot Bitcoin ETFs observed cumulative positive inflows totaling $861.50 million. On-chain data indicates oversold conditions for BTC, suggesting a possible market bottom.

Read full analysis

BTC

ETH

XRP