Jack Dorsey’s Block Unveils 5% Bitcoin Rewards, Proof of Reserves, and New Bitkey Wallet Push

Key Takeaways:

• Block has introduced a new Bitkey hardware wallet, Proof of Reserves, and Cash App that includes services that accumulate Bitcoins automatically.
• Cash App users can convert money incoming into BTC, whereas Square merchants earn 5% Bitcoin rewards bonuses.
• NFC Bitcoin tap-to-pay was also previewed by Block, with an anticipated wider move toward enabling Bitcoin to be utilized in everyday business.

One of the largest updates to its Bitcoin products so far announced by Block is a combination of self-custody, payments, transparency, and merchant adoption into an ecosystem approach. Jack Dorsey and his team publicly mark their company as not only the holder of Bitcoin, but they are the developers of a consumer and institutional infrastructure surrounding the asset.

https://t.co/pkLmTXnxkG

— Bitcoin at Block (@BitcoinatBlock) April 27, 2026

Read More: Block Slashes 4,000 Jobs as AI Reshapes Fintech, Crypto Payments at Core

The key feature of the launch is a new Bitkey hardware wallet featuring an encrypted touchscreen, which will enhance user ownership over self-sovereign Bitcoin. The wallet also keeps the multisignature architecture of Bitkey and eliminates the use of seed phrases, with the new interface providing users with direct control over approvals that are security-critical.

The introduction indicates the increase in the demand of the more easy self-custody solutions as more users leave exchange-held assets. Instead of simply basing the storage, Block is establishing custody as a base to more comprehensive Bitcoin action.

Meanwhile, Cash App announced the automatic conversion of Bitcoins to peer-to-peer payments. Eligible users can now route incoming payments directly into BTC, turning regular money flows into recurring accumulation.

That was paired with a Bitcoin Back rewards program offering 5% rewards at Square merchants, while withdrawal limits were increased to $10,000 per day and $25,000 per week.

Read More: Jack Dorsey Unveils Bitchat, Enabling Bitcoin Transfers Without Internet via Bluetooth Mesh

Block also introduced Proof of Reserves across its corporate treasury, Cash App holdings, and Square customer balances.

The launch is notable because proof-of-reserves tools have largely been associated with exchanges, not payment companies. Block is applying the model to a broader financial stack.

On-chain signatures allow users to directly verify holdings, with no dependence on company reports. That may attract both the retail user base and institutions that demand greater levels of transparency following years of frustrations in the custody sector of crypto.

The move also adds weight to a wider debate over reserve verification as a competitive differentiator. As some companies have challenged the security tradeoffs of public reserve disclosure, others are turning to transparency as core infrastructure.

The other significant announcement took place with reference to payments. Block will present NFC tap-to-pay-Bitcoin, powered by Square at Bitcoin Las Vegas 2026, which will enable users to tap and pay with Bitcoin instead of a QR code.

The company is not presenting Bitcoin as a speculative asset as it does to position it as financial technology to be used every day.

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