Key Takeaways
- Square set to launch bitcoin hardware wallet
- Development confirmed by CEO Jack Dorsey on Twitter
- Square faces significant competition from Trezor and Ledger
Jack Dorsey made this development known by retweeting an initial tweet made by Jesse Dorogusker, the head of Square product development. Dorogusker had alluded that the company had decided to launch a dedicated hardware wallet to promote bitcoin adoption mainstream.
Dorsey endorsed the tweet by stating that Square was already building the wallet. Hardware wallets have increased in popularity in recent years. They are built like traditional flash drives and provide security to crypto assets.
The wallet saves the private keys offline, providing an added layer of security not available on web-based wallets. Hardware wallets are considered cold wallets since they are not connected to the web.
Square will be venturing into a sector with two established players in Trezor and Ledger. Ledger is known for its Nano hardware wallets and is considered the biggest hardware wallet provider in the world.
However, the American company has already shown that it can thrive in a competitive environment. Its Cash App payment service has taken a significant market share since its launch and is one of the leading bitcoin vendor platforms globally.
Square also has the backing of prominent VCs and tech companies which means that it would have significant resources to create a sustainable hardware wallet service. It is also popular within the crypto space due to its commitment to Bitcoin adoption.
It remains to be seen how the crypto community will receive the hardware wallet. However, Square certainly believes that its customers will secure their funds with its unique hardware wallet.
Do you think Square can compete with established hardware wallets like Trezor and Ledger?
