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Digital payments platform Square changed its name to Block as it is expanding its business scope to more crypto-centric endeavors.
Financial services and digital payments platform Square Inc (NYSE: SQ) has announced that it is changing its name to Block. According to the company, this is necessary as it shifts its focus to emerging technologies such as blockchain.
Square says that the name change will take effect from December 10th and “creates room for further growth”. In addition, the company will continue to trade under its original ticker SQ on the New York Stock Exchange. Square’s co-founder and chief executive officer Jack Dorsey issued a statement which read:
“We built the Square brand for our Seller business, which is where it belongs. Block is a new name, but our purpose of economic empowerment remains the same. No matter how we grow or change, we will continue to build tools to help increase access to the economy.”
As part of the rebranding, Block will mesh Cash App, open decentralized Bitcoin exchange tbDEX, and music and video streaming platform Tidal into one. In addition, Square’s crypto-centric arm, called Square Crypto, will also change its name to Spiral as part of the new Block family.
Block Will Give Square a Different Corporate Outlook
The name change is an attempt to differentiate the Square brand, originally built for the seller business, from the corporate entity. Furthermore, according to the company, ‘Block’ is a direct reference to the neighborhood blocks where sellers can be found – a blockchain. In addition, it also has other associated meanings such as building blocks, a section of code, and block parties full of music. Furthermore, Square also revealed that the naming process took over a year from conception to actualization. The payment giant also added that the name change would not alter its structure, purpose, or vision.
Dorsey co-founded Square in 2009 as a credit card business focusing on in-person payments. This provided an avenue for users to accept credit card payments on their smartphones. Since its inception, Square has included a peer-to-peer digital banking app and small business lending facilities. Furthermore, the platform received a bank charter and also included crypto and stock trading in its offerings. Earlier this year, Square acquired Tidal, a media and podcast company formerly owned by rap mogul Jay Z. The company also acquired Afterpay, a ‘buy now, pay later’ company.
Square’s rebranding comes less than 36 hours after its CEO Dorsey stepped down from the same position at Twitter. Dorsey, who also founded Twitter, said his decision to resign was to afford his successor ample space to work without his influence. Shortly after Dorsey gave up his executive role at the social media giant, he was replaced by chief technology officer Parag Agrawal. Both Agrawal and Dorsey currently serve on the Twitter board, a role the latter will continue in.
Dorsey’s resignation from Twitter has now led to speculations that he would enter into crypto and blockchain through Square.