- Anyone may verify Block’s holdings independently using on-chain signatures, according to Block.
- Even though they are the largest corporation in the world holding Bitcoin, Strategy has yet to provide a proof-of-reserve.
Coincident with the increasing number of cryptocurrency firms demonstrating their holdings onchain, online payment provider Block has introduced proof-of-reserves for its corporate Bitcoin treasury as well as its two main products, Cash App and Square.
After unveiling the proof-of-reserves feature and other new features in Las Vegas on Monday, the Jack Dorsey-led business said in a post on X that users should be able to verify the whereabouts of their bitcoin rather than having to believe that it is there.
Proof-of-Reserves Gained Popularity
Anyone may verify Block’s holdings independently using on-chain signatures, according to Block. It also clarified that reserves are actively managed, rather than only being observed historically. The goal of the proof-of-reserves is to confirm the 8,883 Bitcoin, which is the fourteenth biggest Bitcoin holding among corporate treasuries, and is valued at $681.4 million, as shown on Block’s balance sheet.
As a measure of transparency to reassure clients that their assets were fully supported, safe, and not susceptible to abuse, proof-of-reserves gained popularity after the collapse of FTX in November 2022.
Significant cryptocurrency exchanges that have implemented proof-of-reserves disclosures include Kraken, Bitfinex, Bitget, and Binance. Even though they are the largest corporation in the world holding Bitcoin, Strategy has yet to provide a proof-of-reserve.
When asked in May 2025 why his business did not use proof-of-reserves, Strategy executive chairman Michael Saylor cited security concerns about the disclosure of critical information as the reason. In addition to introducing a feature on the Cash App that enables certain customers to have payments converted into Bitcoin automatically, Block also announced a Bitkey hardware wallet with a touchscreen for transaction verification.
The ‘historical average’ may force Bitcoin to hit rock bottom near the $57,000 mark, according to an analyst. In addition to doubling the daily and weekly withdrawal limits to $10,000 and $25,000, respectively, Block is also rewarding Square merchants with 5% Bitcoin cash back.
Dorsey is a leading voice in the movement to make Bitcoin payments commonplace. He has previously said that in order to preserve Satoshi Nakamoto’s original intent for Bitcoin as an electronic peer-to-peer currency system, widespread acceptance of Bitcoin payments is necessary.
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