Block Unveils Major Bitcoin Ecosystem Upgrades: Bitkey Wallet, Cash App Enhancements, and Proof of Reserves

Block Introduces Bitcoin-Focused Products to Strengthen Custody, Payments, and Infrastructure

Block (NYSE: XYZ) has announced a suite of bitcoin-focused products and features designed to enhance its position in custody, payments, and financial infrastructure. The updates include:

• A new Bitkey hardware wallet with an integrated secure touchscreen
• Expanded bitcoin earning tools within Cash App
• A Proof of Reserves system for transparency
• A forthcoming Square tap-to-pay experience for bitcoin transactions

The Bitkey Hardware Wallet: A New Era of Self-Custody

The updated Bitkey hardware wallet represents a significant shift in how users interact with self-custody solutions. The device features a secure touchscreen that serves as the primary interface for transaction verification and security settings.

In a note shared with Bitcoin Magazine, Block explained that the wallet’s design addresses risks associated with external devices, where users often rely on separate systems to manage wallet permissions. By integrating transaction approval and security controls directly into the hardware, Bitkey aims to give users full control over both funds and system integrity.

The Bitkey wallet operates on a 2-of-3 multisignature model and eliminates the need for seed phrases. Additional features include inheritance capabilities and a privacy-focused design. Block has opened preorders for the device and released a technical document outlining its framework across security, recovery, privacy, and usability.

Cash App’s Bitcoin Enhancements: Earning, Spending, and Access

Cash App has introduced several bitcoin-related updates focused on accumulation and accessibility:

• Users can now convert incoming peer-to-peer payments into bitcoin, enabling recurring purchases through transfers.
• The platform has launched a “Bitcoin Back” program, offering 5% rewards in bitcoin on eligible transactions with Square merchants, subject to a monthly cap.
• Bitcoin withdrawal limits have been increased to $10,000 per day and $25,000 per week.
• Fees and spreads have been removed on purchases above $2,000.
• Direct deposit in bitcoin is now available without additional costs.

These changes position Cash App as a more active gateway for bitcoin usage tied to income and spending.

Block’s Proof of Reserves: Transparency Through On-Chain Verification

Block has 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 enable public verification of bitcoin balances, ensuring reserves remain under active control rather than relying on historical snapshots.

Square Tap-to-Pay: Bitcoin Payments via NFC and Lightning Network

At Bitcoin Las Vegas 2026, Block plans to demonstrate bitcoin payments through Square using NFC tap-to-pay technology. This system eliminates 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 has announced that it will offer zero processing fees for these transactions through 2026.

This post first appeared on Bitcoin Magazine and is written by Micah Zimmerman.