Jack Dorsey’s Block Introduces Bitcoin Proof-of-Reserves
Joerg Hiller Apr 28, 2026 06:13
Block unveils proof-of-reserves for its 8,883 BTC treasury, Cash App, and Square users, aiming to boost transparency amid FTX-fueled demand for audits.
Jack Dorsey’s Block has launched a Bitcoin proof-of-reserves (PoR) feature, allowing investors and users of its flagship products, Cash App and Square, to independently verify the firm’s Bitcoin holdings. The announcement was made on April 28, alongside other Bitcoin-focused updates, as part of the company’s ongoing push to enhance transparency and consumer trust.
Block’s corporate Bitcoin treasury currently holds 8,883 BTC, valued at approximately $681.4 million based on Bitcoin’s price of $77,839.68 on launch day. These holdings place Block as the 14th-largest corporate Bitcoin owner globally, according to BitcoinTreasuries.net. Users can confirm reserves on-chain through cryptographic signatures, ensuring that the assets are actively controlled rather than merely observed.
"People shouldn’t have to trust that their Bitcoin is there—they should be able to verify it," Block noted in its announcement, emphasizing its commitment to transparency. This marks a significant move in an industry shaken by the collapse of FTX in November 2022, where mismanagement of customer funds led to losses in the billions. Since then, proof-of-reserves has gained traction as a standard for reassuring customers that their assets are fully backed and secure.
In addition to PoR, Block also introduced a Bitkey hardware wallet with a touchscreen and new Cash App features, such as automatic Bitcoin conversion for selected payments and 5% Bitcoin cashback rewards at Square merchants. The company has also raised Bitcoin withdrawal limits to $10,000 per day and $25,000 per week, signaling its confidence in scaling Bitcoin as a payment system.
Industry Divided on Proof-of-Reserves
While Block's move aligns with growing demand for financial transparency, not everyone sees proof-of-reserves as a universally positive development. Michael Saylor, executive chairman of Strategy, the largest corporate Bitcoin holder, has publicly criticized PoR. In May 2025, he argued that it poses security risks, potentially exposing sensitive information and diluting the security of custodians and investors. Strategy has notably refrained from issuing proof-of-reserves for its treasury, which dwarfs Block’s holdings.
Despite the criticism, major exchanges like Binance, Kraken, and Bitfinex have embraced PoR mechanisms, leveraging them to build user trust in a competitive and often volatile crypto market.
Why This Matters
Block’s embrace of PoR comes as the broader crypto industry faces increased regulatory scrutiny and an ongoing trust deficit. For traders, it’s a signal that institutions are willing to adopt practices that prioritize transparency, potentially setting a new benchmark for corporate treasuries and consumer-facing platforms. With $2 billion in Bitcoin holdings as of Q1 2026 and a suite of Bitcoin-focused services, Dorsey’s firm is positioning itself as a leader in mainstream Bitcoin adoption.
As Bitcoin hovers near $78,000, down slightly by 0.19% over the past 24 hours, the market’s reaction to Block’s announcements is worth watching. The combination of transparency measures and product enhancements could attract more retail and institutional engagement, potentially driving further adoption of Bitcoin as a global payment system.
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