Jack Dorsey’s Block Launches Bitcoin Proof-of-Reserves | Crypto Security News
Crypto security news: Jack Dorsey’s Block Launches Bitcoin Proof-of-Reserves. This update explains what happened, why it matters for wallets, exchanges, traders, and users, and what the market should watch next.
Crypto Security Update
Online payments firm Block has launched proof-of-reserves for its corporate Bitcoin treasury and two of its flagship products, Cash App and Square, joining a growing list of crypto companies proving their holdings onchain. “People shouldn’t have to trust that their bitcoin is there, they should be able to verify it,” the Jack Dorsey-led company said in a post to X after announcing the proof-of-reserves feature and other new offerings in Las Vegas on Monday.Block said anyone can “independently confirm Block’s holdings” through on-chain signatures. “Reserves are actively controlled, not just historically observed,” it added.Source: BlockThe proof-of-reserves seeks to verify the 8,883 Bitcoin, worth $681.4 million, marked on Block’s balance sheet — the 14th-largest Bitcoin holding among corporate treasuries.Proof-of-reserves became more widely adopted after the collapse of FTX in November 2022 as a transparency measure to assure customers that holdings were fully backed, secure and not at risk of misuse.Binance, Kraken, OKX, Bitfinex and Bitget are among the largest crypto trading platforms that have adopted proof-of-reserves disclosures.Strategy’s Saylor once said proof-of-reserves is a ‘bad idea’Strategy, the biggest corporate holder of Bitcoin in the world, has not issued any proof-of-reserves. In May 2025, Strategy executive chairman Michael Saylor flagged proof-of-reserves as a security risk when asked why his company doesn’t adopt the measure, arguing that it exposes sensitive information.“It actually dilutes the security of the issuer, the custodians, the exchanges and the investors,” Saylor said at the time. “It’s not a good idea. It’s a bad idea.” Display of Bitcoin proof-of-reserves for Block’s Bitcoin treasury, Cash App and Square. Source: BlockBlock also launched a Bitkey hardware wallet with a touchscreen to verify transactions while rolling out a feature on Cash App allowing certain users to have payments automatically converted into Bitcoin.Related: ‘Historical average’ could push Bitcoin bottom at $57K level: AnalystBlock is also offering 5% Bitcoin cash back rewards at Square merchants and has raised customer withdrawal limits fivefold to $10,000 per day and $25,000 per week.Dorsey is one of the biggest advocates seeking to push Bitcoin payments into the mainstream.He previously said Bitcoin payments must see wide adoption to uphold Satoshi Nakamoto’s original vision of Bitcoin as an electronic peer-to-peer cash system.Magazine: Adam Back says current demand is ‘almost’ enough to send Bitcoin to $1MCointelegraph is committed to independent, transparent journalism. This news article is produced in accordance with Cointelegraph’s Editorial Policy and aims to provide accurate and timely information. Readers are encouraged to verify information independently.
Why This Security News Matters
First, this development may affect exchange safety, wallet security, user trust, and broader market sentiment. In addition, it may influence platform security practices, fund recovery efforts, and regulatory pressure. As a result, traders and crypto users should watch the next updates closely.
What To Watch Next
Watch for official statements, post-mortem reports, wallet warnings, exchange responses, and fund recovery updates. In particular, any new details about phishing, exploits, private key exposure, or security patches could directly affect the broader crypto market.
