Square's Cash App makes buying and selling Bitcoin easier, but CEO Jack Dorsey prioritizes the digital currency–and Square intends to make further investments.
Dorsey announced last month that he would be starting a Bitcoin division called TBD, and on Friday he revealed what it would be a decentralized exchange.
It is well known that other blockchains have decentralized exchanges (DEXs) like Ethereum's Uniswap and SushiSwap, and Binance's PancakeSwap. In order to provide users with a variety of options for exchanging fiat currency for BTC, TBD plans to make a permissionless and decentralized exchange built around Bitcoin.
"[TBD's] direction is to create an open platform in building a decentralized exchange for Bitcoin," Dorsey, also CEO of Twitter, said on Friday.
The token swaps on a DEX, unlike Coinbase and Binance, are overseen by users directly, rather than a centralized exchange. DEXs lack access to traditional financial institutions and compliance procedures, so fiat currency cannot be used.
Square has reportedly forged a different path with its Bitcoin DEX vision. Square's TBD project leader, Mike Brock, addressed Dorsey in an extensive thread outlining his ideas about how they can move forward with open-source DEX.
Brock wrote that he believes bitcoin will become the internet's native currency. “Our focus is solely on a sound global monetary system for all, despite there being many projects designed to help decentralize the internet. However, we think some pieces are missing to include all.”
Square CEO Dorsey previously announced that the company would be developing a "non-custodial, permission-less, and decentralized financial services" business whose "primary focus is the pioneer Crypto asset.
Following Square's announcement that it would be trying to develop an open-source BTC hardware wallet, the TBD project was announced.
Square's CEO and co-founder of Twitter, Jack Dorsey, is a Bitcoin maximalist, meaning he considers all other cryptocurrencies irrelevant, so it's unsurprising to see them build this project based entirely on Bitcoin infrastructure.