Square is building a decentralized finance business using bitcoin

Business

CNBC 16 July, 2021 - 11:19am 37 views

Payments company Square is launching a business dedicated to "decentralized financial services" using bitcoin.

Square CEO and bitcoin bull Jack Dorsey said on Twitter late Thursday that the company is "focused on building an open developer platform with the sole goal of making it easy to create non-custodial, permissionless, and decentralized financial services."

The new unit will include the Seller, Cash App and recently acquired Tidal businesses.

Decentralized finance, or DeFi, applications are those that don't rely on centralized authorities like banks, but instead use blockchain-based smart contracts to execute transactions. Most are being built on the Ethereum blockchain.

DeFi applications allow for financial transactions that are more easily accessible, efficient, and relatively low cost. They've also been highly attractive to yield seekers who can generate returns between about 15% and 30% by participating in the DeFi ecosystem – by "locking" capital in smart contracts.

"DeFi platforms function similarly to traditional banks and financial services companies and could pose a disruption risk in the coming years," Needham's John Todaro said in a recent report focused on the DeFi opportunity. "In the current yield starved environment, there has been an increased demand for DeFi platforms which offer significantly higher yields than traditional financial products."

But like cryptocurrency activity broadly, DeFi comes with many different kinds of risks, including regulation, asset volatility and the technology itself. Because there aren't banks or other third-party companies facilitating transactions, there's no insurance on funds that could potentially get lost. Cryptocurrencies are volatile, which means assets put up as collateral could quickly decline in value if there's a downturn, which could lead to positions being liquidated. And there could be errors in the original smart contract code.

The current estimated value of funds currently locked into DeFi-related contracts is $55.21 billion, according to DeFi Pulse.

Dorsey said the team is committed to building in a transparent way that includes an "open roadmap, open development, and open source."

Mike Brock, who leads strategic initiatives within Square's consumer product Cash App, will lead the new business.

"Technology has always been a story of decentralization," he said in a follow-up tweet. "From the printing press, to the internet to bitcoin – technology has the power to distribute power to the masses and unleash human potential for good, and I'm convinced this is the next step."

Got a confidential news tip? We want to hear from you.

Sign up for free newsletters and get more CNBC delivered to your inbox

Get this delivered to your inbox, and more info about our products and services. 

Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes, and Market Data and Analysis.

Read full article at CNBC

Square to build DeFi platform business

Finextra 16 July, 2021 - 10:35am

Square is creating a new business (joining Seller, Cash App, & Tidal) focused on building an open developer platform with the sole goal of making it easy to create non-custodial, permissionless, and decentralized financial services. Our primary focus is #Bitcoin. Its name is TBD.

For Finextra's free daily newsletter, breaking news and flashes and weekly job board.

Bitcoin Eyes $30,000 and Jack Dorsey Reveals New Square Bitcoin Platform

TheStreet 16 July, 2021 - 05:49am

Bitcoin was down 3.56% at $31,381 after posting its biggest drop in more than 10 days on Thursday amid a broader downdraft that has seen both retail and institutional interest in the world’s biggest cryptocurrency wane.

A lower Friday close would mark the steepest weekly selloff since June 14. Bitcoin touched an all-time high of nearly $65,000 in mid-April. At last check, it was down 0.17% at $31,818.

The lackluster activity came as Square founder and CEO Jack Dorsey announced the creation of a new Square division dedicated to building decentralized financial services using Bitcoin.

In a tweet, the billionaire co-founder of Twitter  (TWTR) - Get Report said Square would build out a new division focused on an open-source platform that will allow businesses to create financial services products and services using Bitcoin as the foundation.

Dorsey followed that tweet with a thread explaining that, like Square's new Bitcoin hardware wallet, the developments will be completely open-source.

"Like our new #Bitcoin hardware wallet, we’re going to do this completely in the open. Open roadmap, open development, and open source. @brockm is leading and building this team, and we have some ideas around the initial platform primitives we want to build," Dorsey said.

“Bitcoin changes absolutely everything. I don’t think there is anything more important in my lifetime to work on," Dorsey said at a recent Bitcoin conference.

“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.”

Jack Dorsey's Square is building a bitcoin-inspired financial services business

Business Insider 16 July, 2021 - 12:00am

“No Rules Rules: Netflix and the Culture of Reinvention”

Get it now on Libro.fm using the button below.

Dorsey, who is also CEO of Twitter, said that the new business was called TBD, although he didn't clarify whether this meant he was still thinking of a name.

Square executives said in June that the company was planning to build a hardware cryptocurrency wallet and software service with the intent of making bitcoin "more mainstream."

A Twitter account for Square's new business has already been set up.

Mike Brock, who leads the Strategic Development Group at Square's payments service Cash App , will be in charge of Square's new business, Dorsey said.

Insider has reached out to Square for more information on TBD.

Square, a digital payments company based in San Francisco, has three other business lines, including Tidal, Cash App, and Square Seller.

Jack Dorsey says Square has a new Bitcoin business named TBD

The Verge 15 July, 2021 - 06:01pm

Meet your new open source platform for decentralized and permissionless financial services

Like our new #Bitcoin hardware wallet, we’re going to do this completely in the open. Open roadmap, open development, and open source. @brockm is leading and building this team, and we have some ideas around the initial platform primitives we want to build.

What does that mean exactly? Is the new business called TBD, or is the name “to be determined” at a later date? In the words of at least one editor of The Verge, “I absolutely do not know what he is talking about.” When contacted by The Verge, a spokesperson for Square declined to comment.

What we do know comes mostly from the unit’s new leader Mike Brock, who confidently tweeted out several names of TBD’s founding team, and says he’s “super excited to return to the world of open source.” Further updates on exactly what TBD is doing should come via Twitter and GitHub accounts. But exactly when those updates might arrive is, well, TBD.

As @jack said, we're going to be biasing towards being open and transparent. So we'll be sharing a lot more about our plans in the coming days and weeks. We're also going to be thinking of ways to include the community in our planning. So stay tuned!

Subscribe to get the best Verge-approved tech deals of the week.

Check your inbox for a welcome email.

Stocks making the biggest moves after hours: Square, Alcoa, American Outdoor Brands & more

CNBC 15 July, 2021 - 04:08pm

Check out the companies making headlines after the bell:

Square — Shares of Square rose nearly 1% in after-hours trading after CEO Jack Dorsey announced the digital payments company will create an open-source, developer platform focused on bitcoin. Dorsey said the platform will have "the sole goal of making it easy to create non-custodial, permissionless, and decentralized financial services."

Alcoa — The global aluminum producer saw its equity rise 0.9% after reporting better-than-expected second-quarter earnings. Alcoa posted adjusted earnings of $1.49 per share, topping Wall Street's estimate of $1.29 per share, according to FactSet. The company also reported revenue of $2.83 billion versus analysts' $2.65 billion projection.

Moderna — The pharmaceutical company's stock jumped 8% during extended trading after an announcement that it will be added to the S&P 500, replacing Alexion Pharmaceuticals. Moderna is joining the index prior to the opening of trade on July 21, according to the S&P Dow Jones Indices. AstraZeneca is acquiring Alexion, according to the release announcing the index change.

American Outdoor Brands — Shares of American Outdoor Brands sunk about 12% after the outdoors equipment supplier reported fiscal fourth-quarter sales below what analysts had expected, according to Factset. Per-share profit topped estimates, however.

Valero Energy — The energy producer's stock jumped slightly in after-hours trading after the company's board declared a regular quarterly cash dividend of 98 cents a share. Valero, which operates 15 petroleum refineries, has seen its stock climb 18% in 2021 amid pent-up demand for travel and oil.

Got a confidential news tip? We want to hear from you.

Sign up for free newsletters and get more CNBC delivered to your inbox

Get this delivered to your inbox, and more info about our products and services. 

Data is a real-time snapshot *Data is delayed at least 15 minutes. Global Business and Financial News, Stock Quotes, and Market Data and Analysis.

Square to create new bitcoin-focused business

Reuters 15 July, 2021 - 03:39pm

July 15 (Reuters) - Fintech company Square Inc (SQ.N) is creating a new business focused on bitcoin , Chief Executive Officer Jack Dorsey said in a tweet on Thursday.

The new company will focus on building an open developer platform with the goal of making it easy to create decentralized financial services. (https://bit.ly/3wJcFuv)

"Its (new business) name is TBD," Dorsey tweeted but did not elaborate if the name was to be determined or if it was going to be named "TBD".

The business will be led by Mike Brock, who heads the Strategic Development Group at Square's payments service Cash App.

This will be completely open source like Square's previously announced hardware wallet for bitcoin, which can be stored offline or online at cryptocurrency exchanges. read more

Our Standards: The Thomson Reuters Trust Principles.

A Chinese spacecraft capable of flying to the edge of the atmosphere took off and returned to Earth on the same day in what China said was a big step towards developing reusable space transportation technology.

The most comprehensive solution to manage all your complex and ever-expanding tax and compliance needs.

The industry leader for online information for tax, accounting and finance professionals.

Information, analytics and exclusive news on financial markets - delivered in an intuitive desktop and mobile interface.

Access to real-time, reference, and non-real time data in the cloud to power your enterprise.

Screen for heightened risk individual and entities globally to help uncover hidden risks in business relationships and human networks.

All quotes delayed a minimum of 15 minutes. See here for a complete list of exchanges and delays.

© 2021 Reuters. All rights reserved

Jack Dorsey Announces New Square Division To Build DeFi on Bitcoin

TheStreet 15 July, 2021 - 03:33pm

Dorsey followed that tweet with a thread explaining that, like Square's new Bitcoin hardware wallet, the developments will be completely open-source.

"Like our new #Bitcoin hardware wallet, we’re going to do this completely in the open. Open roadmap, open development, and open source. @brockm is leading and building this team, and we have some ideas around the initial platform primitives we want to build."

The new business will combine the efforts of CashApp, Seller and Tidal in the same goal of decentralized financial services. 

Recently Dorsey has shown great interest in Bitcoin. Dorsey stated that he would even leave Square or Twitter should its development become more vital during the Bitcoin 2021 conference.

“Bitcoin changes absolutely everything. I don’t think there is anything more important in my lifetime to work on," said Dorsey

“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.”

Since then Dorsey has taken further steps into the Bitcoin space. He first announced an event called The B Word geared at demystifying mainstream narratives surrounding Bitcoin.  Then Square's hardware lead, Jesse Dorogusker, announced the development of a new hardware wallet, stating the goal of making Bitcoin custody more mainstream. 

With Dorsey's continued engagement and interest in developing tools for Bitcoin, he has emerged as one of the cryptocurrency's largest advocates. 

Business Stories

Top Stores