Square CEO Jack Dorsey has announced that the company is creating a new division dedicated to developing Bitcoin-based decentralized financial services.
Dorsey makes an announcement on Twitter, says that Square’s new division will create an open developer platform with the sole goal of making it easier to build decentralized, permissionless, and decentralized financial services. .
A company the size of Square that aims to create simple DeFi services on Bitcoin could potentially increase adoption and bring more competition to Ethereum-based DeFi.
The Bitcoin network currently lacks smart contract capabilities, making it difficult to compete with DeFi based on Ethereum and its interactive ‘Money Legos’. To launch smart contracts, decentralized finance on Bitcoin requires additional infrastructure such as bridges and sidechains.
Dorsey named engineer Mike Brock Division Director. Brock previously oversaw a development team working to integrate Bitcoin functionality for the Cash App in 2018. Brock has experience with open source projects due to working with Red Hat Inc., a developer. provides enterprise open source solutions.
The San Francisco-based digital payments company has three lines of business: Cash apps, Square Seller products, and music streaming service Tidal, which it bought earlier this year. Dorsey has long sought to expand Square into a larger organization with lots of autonomous entities.
Dorsey is also a supporter of Bitcoin and Square said last month that they are growing hardware wallet for electronic money. In February, the business also revealed that Bitcoin now accounts for 5% of their holdings.
DeFi on Ethereum has exploded in 2021 and according to Dune Analytics, DeFi . User Base (per unique address) grew from 1.1 million in early January to about 3 million in July.
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