Cash App
Exchange CustodyCash App by Block (formerly Square) allows Bitcoin purchases within its popular payment app. Over 50 million monthly active users. Proof of reserves published. Auto-invest feature for DCA. Founded by Jack Dorsey.
Quick Verdict
With a Custody Score of 6.7/10, Cash App is ranked #7 of 10 among exchange custody providers. Its strongest category is Withdrawal Flexibility and its weakest is Counterparty Diversification.
Analysis
Score Breakdown
The Custody Score is a weighted average across 8 criteria, each rated 1-10.
| Criterion | Score | Weight | Weighted |
|---|---|---|---|
| Security | 7 | 20% | 1.40 |
| Insurance | 5 | 15% | 0.75 |
| Regulatory | 8 | 15% | 1.20 |
| Fee Transparency | 5.5 | 10% | 0.55 |
| Track Record | 7.5 | 15% | 1.13 |
| Withdrawal Flexibility | 8.5 | 10% | 0.85 |
| Reporting & Audit | 7 | 10% | 0.70 |
| Counterparty Diversification | 2 | 5% | 0.10 |
| Total | 100% | 6.7 |
Key Features
- ✓50M+ monthly users
- ✓Free Bitcoin withdrawals
- ✓Auto-invest (DCA)
- ✓Proof of reserves
- ✓Lightning Network support
- ✓Mainstream accessibility
Fee Breakdown
| Setup Fee | Free |
| Annual Custody Fee | None |
| Transaction Fee | ~1.5-2.5% (spread) |
| Withdrawal Fee | Free Bitcoin withdrawals |
| Notes | Convenient but higher spread than dedicated exchanges. Free withdrawals. |
Security Details
Key Management
Block Inc. managed custody
Cold Storage
Majority cold
SOC Compliance
Block Inc. SOC 2
Penetration Testing
Yes
Incident History: 2022 employee data breach (Cash App Investing, not Bitcoin)
Insurance Coverage
Coverage
Block Inc. corporate insurance
Carrier
Via Block Inc.
Details
Publicly traded parent company (Block Inc. / SQ).
Regulatory Status
Licenses
- NY BitLicense
- State money transmitter licenses
- FinCEN MSB
Block Inc. (NYSE: SQ) — publicly traded fintech company.
Pros & Cons
Pros
- Most accessible Bitcoin on-ramp — 50M+ users
- Free Bitcoin withdrawals
- Publicly traded parent (Block/SQ)
- Lightning Network support
- Proof of reserves published
Cons
- Higher spread than dedicated exchanges
- Limited Bitcoin features
- 2022 employee data breach
- Not a dedicated Bitcoin platform
- Single custodian risk