Square Inc (NYSE:SQ) will build a decentralized exchange as part of its TBD project.
Key Takeaways
- Jack Dorsey, CEO and founder of Square, has announced plans to build a decentralized exchange (DEX).
- Mike Brock, who will head the project, has also described the DEX as an on- and off-ramp for crypto wallets.
- Square's TBD project will undertake the effort.
Dorsey Announces TBD’s Direction
“We’ve determined [TBD’s] direction,” Dorsey wrote on Twitter on Friday, Aug. 27. “[The project will] help us build an open platform to create a decentralized exchange for Bitcoin.”
Dorsey originally announced TBD in July, stating that it would serve as an open developer platform and the basis of various DeFi services.
Mike Brock, the General Manager of TBD at Square, also commented on the effort today. He stated that there has been “a lot of speculation about what TBD is and isn’t.”
He went on to explain that the project will simplify the process of funding a non-custodial wallet without using custodial exchanges like Square’s Cash App and Coinbase Global (NASDAQ:COIN). He added that this will be done by creating on- and off-ramps into Bitcoin.
“You can think about this as a decentralized exchange for fiat,” Brock concluded in his series of tweets. He added that it will also be open source and permissionless and work with any crypto wallet.
Effort Is Different From Square Crypto
Unlike Square Crypto, which is funding Bitcoin development in general, TBD has a slightly different scope. Dorsey said the effort will unite Square’s Seller and Cash App services as well as its recently acquired music service, Tidal.
To date, Square Crypto has funded several crypto projects. It is currently working on an open hardware wallet for Bitcoin.
On top of its development efforts, Square has invested heavily in cryptocurrency. The firm currently holds over 8,000 BTC, roughly equivalent to $393 million at current prices.