Cash App Adds Stablecoin Support on Ethereum and Solana
In brief
- Cash App now supports USDC transfers on Ethereum scaling networks Polygon and Arbitrum with zero fees.
- Stablecoins received by users automatically convert to dollars in their Cash App balance.
- Rollout excludes New York customers and requires identity verification and transaction limits.
- Jack Dorsey previously criticized stablecoins as shifting control 'from one gatekeeper to another.'
Stablecoin Rollout and Feature Set
Cash App users can now send and receive Circle's USDC on Ethereum scaling networks Polygon and Arbitrum without fees. Stablecoins received by Cash App users are automatically converted into dollars, represented as standard balances in the app. Users must verify their identity and remain subject to transaction limits for these transfers.
Stablecoins aren't yet available for customers in New York, reflecting state-level regulatory constraints. The feature rolled out in March alongside Square's decision to enable Bitcoin payments by default for U.S. sellers via the Lightning Network.
The Dorsey Paradox
The timing underscores a strategic tension at Block. Jack Dorsey, among Bitcoin's most visible advocates, has long prized Bitcoin as an open protocol for money transmission. Yet he critiqued stablecoins earlier this year as shifting "from one gatekeeper to another," raising questions about centralized dollar-backed tokens.
Block Bitcoin Product Lead Miles Suter framed the move differently: stablecoins serve as a complementary option for customers, with Cash App remaining Bitcoin-first by design. The expansion reflects growing competition following the passage of federal legislation for stablecoins last year.
Market Context
Block shares changed hands around $71.55 on Wednesday, rising nearly 3.5% midday. The company's stock price has rallied nearly 10% year-to-date, outpacing Bitcoin itself. Over the same period, Bitcoin's price has declined over 14% to $74,800.
The move positions Cash App to compete with rivals like PayPal's Venmo, which records users' holdings of PYUSD stablecoin alongside other digital assets under a crypto tab.
