Updated 19 Jul, 2021

Jack Dorsey’s Square Bets on Bitcoin to Launch DeFi Platform

 

Launch DeFi Platform

 

Key Takeaways:

  • Payments company Square to build a decentralized finance platform using Bitcoin
  • The business would include “open roadmap, open development, and open source.”

Square to Build a DeFi Platform on Bitcoin

Square, the payments company founded by Bitcoin evangelist Jack Dorsey, is launching a business that would be entirely based on Bitcoin. The company will be dedicated to “decentralized finance” or DeFi. The new unit in the company that has been purchasing bitcoin for a while, will aim to provide a new, decentralized way to access financial services, including lending, trading and savings.

“Square is creating a new business (joining Seller, Cash App, & Tidal) focused on building an open developer platform with the sole goal of making it easy to create non-custodial, permission less, and decentralized financial services,” Jack Dorsey said on Twitter in a thread, explaining how he saw the project unfolding. Also, he said “our primary focus is Bitcoin,” in his opening Twitter post.

Decentralized finance is becoming one of the most discussed topics in cryptocurrency. It concerns a whole new field of innovation in finance. The main goal of it is to provide a platform for financial services that doesn’t rely on centralized authorities. The decentralized financial system would be denominated in cryptocurrencies and the entire process would leave out middlemen like banks.

The Platform Promises to be Entirely Open Source

Even though the concept is clear, it is still uncertain what the business will offer to potential developers and how the project would be monetized. Until a name is chosen, the business would be called TBD. “We’re going to do this completely in the open. Open road map, open development, and open source,” the Square and Twitter founder and CEO said.

Jack Dorsey, who apart from Square is running his other business, Twitter, has been a vocal proponent of Bitcoin for years. On nearly every occasion he gets, Mr. Dorsey praises Bitcoin’s characteristics. In a recent appearance, the Bitcoin bull said the leading cryptocurrency is his “lifetime’s work”. Jack Dorsey is also expected to hold an online educational Bitcoin conference. Happening on July 21 the event would be directed toward revealing Bitcoin’s key functions and features.