Cash App to Expand into a Full-Service Digital Bank Offering Stocks, ETFs, and Debit Cards

ME News reports that on October 30 (UTC+8), Block, the fintech company founded by Jack Dorsey, announced plans to transform its cryptocurrency and payment platform, Cash App, into a comprehensive digital bank. The transformation will include offerings such as stock, ETF, and Bitcoin trading, short-term loans, high-yield savings, and customized debit cards to enhance user engagement and customer retention. This year, Cash App has generated nearly $4 billion in gross profit, accounting for 64% of Block’s total revenue. Block has already submitted an application to the U.S. Office of the Comptroller of the Currency (OCC) in September to establish Builders Bank & Trust NA. In Q2, Cash App’s loan origination volume increased by 59% year-over-year, and it currently offers stock, ETF, and Bitcoin trading.
Currently, Cash App has 9.4 million users who rely on it as their primary banking service, a 17% year-over-year increase. However, Cash App continues to face stagnant user growth and regulatory pressures, as multiple lawsuits have alleged that criminals have used the platform for fraud, identity theft, and money laundering. In August, Block disclosed that it had doubled its potential legal reserve for a long-running investigation by the U.S. Department of Justice (DOJ) to $526 million. Additionally, despite the company’s ongoing launch of new products, some users still primarily use Cash App for occasional money transfers rather than for everyday banking, investing, or spending services. (Source: PANews)