Jack Dorsey’s Cash App to Enable Stablecoin and Bitcoin Payments in 2026

TLDR

• Cash App will soon allow users to send and receive stablecoins through its mobile platform
• The app will enable Bitcoin Lightning Network payments, automatically converting USD to BTC for users who don’t hold crypto
• Square merchants can now receive payments in multiple formats including BTC to BTC, BTC to fiat, fiat to BTC, or fiat to fiat
• Circle CEO Jeremy Allaire indicated USDC may be among the stablecoins supported on the platform
• Features are expected to roll out in early 2026 as part of Cash App’s largest product update bundle

Jack Dorsey’s Block announced that Cash App will add stablecoin transaction capabilities to its mobile payment platform. The company revealed plans for the feature on Thursday as part of a larger product update package.

The announcement included details about several crypto-related features coming to the app. Users will be able to send and receive stablecoins, spend Bitcoin through the Lightning Network, and convert fiat currency into BTC payments. Reports indicate these features could launch in early 2026.

Cash App did not specify which stablecoins will be available on the platform. The largest stablecoins by market capitalization include Tether’s USDt and Circle’s USDC. Circle CEO Jeremy Allaire responded to the announcement by suggesting his company’s USDC stablecoin would be integrated into Cash App’s payment system.

The stablecoin announcement follows earlier news about Bitcoin features rolling out on Square. Square is Block’s merchant payment platform that serves more than four million sellers. These merchants can now accept various payment combinations including Bitcoin to Bitcoin, Bitcoin to fiat, fiat to Bitcoin, and fiat to fiat transactions.

Lightning Network Integration

The Bitcoin Lightning Network integration will work differently than traditional crypto payments. Users who don’t hold Bitcoin can still make Lightning payments by scanning a QR code. The app will automatically convert their USD balance to complete the transaction.

Miles Suter, Block’s Bitcoin product lead, explained the company’s strategy. He said Bitcoin provides the foundation for an open financial system. Stablecoins serve as a way to move digital dollars quickly.

Product Update Bundle

The stablecoin and Bitcoin features are part of Cash App’s largest product release to date. The company announced 11 product updates and over 150 improvements to the platform. The bundle includes flexible banking benefits, AI-powered navigation, and enhanced safety features.

Owen Jennings, an executive officer at Block, commented on the updates. He said traditional financial institutions haven’t kept pace with how people earn and manage money today. Cash App aims to build a platform that matches current economic participation patterns.

Square Bitcoin also introduced a merchant incentive program last month. The program allows merchants to accept Bitcoin with zero fees until 2027. Analysts from Mizuho described this as a test of Bitcoin’s ability to function as an everyday payment method rather than just a store of value.

The timing of Cash App’s stablecoin integration comes as USD-pegged token adoption reaches record levels. Major U.S. financial institutions have launched their own stablecoin initiatives. Early Warning Services, which operates the Zelle payment network, recently began exploring stablecoin technology for international transfers.

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