Cash App Adding Strengths to Investment Services Blocks Long Term Call



Jack Dorsey’s Block (NYSE: SQ), the fintech juggernaut formerly known as Square, controls Cash App, one of the largest providers of digital wallets.

While Cash App is often seen as a way for people to send money to each other efficiently without the fees and wait times encountered at a bank branch, there is much more to the story and with this ” more “comes from the positive implications not only for Block, but for exchange-traded funds such as the ETF ARK Fintech Innovation (NYSEARCA: ARKF).

In recent years, Cash App has rapidly evolved into not only a bank for the unbanked and those fed up with bad customer service in old traditional banks, but the platform has also added services such as purchasing. fractional shares and buying and selling bitcoins. Today it relies on these services and this could be significant for ARKF investors.

“Cash App, the personal finance app founded in 2013 and owned by payments giant Block, is launching a new service that aims to simplify the process of sending stocks and bitcoins from one customer to another,” report Business intern. “The tool, which launched on Tuesday, will allow Cash App customers in the United States to send bitcoin and stock gifts to other Cash App customers at no cost. “

The expansion of Cash App’s services and its ability to monetize these additions are relevant to ARKF investors as the ARK fund allocates 9.48% of its weight to Block shares, making the actively managed fund one of the largest owners. ETF of the share.

The aim of the new services is to further blur the line between asset and currency.

“We’ve been thinking for some time about blurring the line between a currency and an asset, being able to send different assets, and being able to move money in a thoughtful way that also has flair and personality,” Ryan Budd, head of financial services at Cash App, said Initiated.

Cash App, a major driver of Block’s revenue growth, already provides banking and investing services to clients who previously had no exposure to traditional services and to those looking for ease of use. use. Making stocks and bitcoin more transferable is a logical next step for the digital wallet.

The moves could also broaden the audience for crypto users and investors, which is relevant to ARKF thanks to the fund’s cryptocorrelations enhanced by Block and Coinbase (NASDAQ: COIN), among others.

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The opinions and forecasts expressed herein are solely those of Tom Lydon and may not come to fruition. The information on this site should not be used or interpreted as an offer to sell, a solicitation of an offer to buy or a recommendation for any product.



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