Cash App Added Bitcoin Rewards Feature
Users can now earn a 2% annual yield on Bitcoin holdings without locking their assets.
Updated on Oct. 1, 2026 in Investing
Live Poll
Would you opt in to earn rewards by holding cryptocurrency in a digital wallet app?
Block has introduced a new feature for Cash App users that allows them to earn rewards on their Bitcoin holdings. Households that opt in can earn up to 2% in Bitcoin annually, with the rewards remaining accessible for withdrawal at any time.
Why it matters
The new feature provides a way for users to accumulate additional Bitcoin without traditional staking or lending requirements. Because there are no lockup periods for these funds, users retain full liquidity of their holdings while participating in the rewards program.
Eligible users can earn up to a 2% annual Bitcoin rewards yield on their holdings. This program follows a second quarter where Cash App volume reached $56.5 billion, reflecting 17% growth year-over-year.
The players
Block, Inc.
A financial technology company that operates the Cash App platform and manages consumer payment and lending services.
Jack Dorsey
The leader of Block, Inc. who encouraged users to adopt the company's new Bitcoin reward feature.
The details
To participate, users must actively opt-in through the Bitcoin tab within the Cash App interface. Unlike conventional lending or staking models, this feature does not require users to lock their assets, meaning the Bitcoin remains available for withdrawal whenever the user chooses. Readers should note that any Bitcoin earned through these rewards is subject to taxation.
Timeline
September 30, 2026: Block introduced the Bitcoin rewards feature and Jack Dorsey encouraged user participation.
Money Landscape
This move follows a period of robust growth for Block, which reported a 17% year-over-year increase in Cash App volume and a 59% jump in consumer lending originations. It places the firm within an industry-wide effort to capture and retain crypto-active retail users through yield-bearing products.
If you hold Bitcoin in your Cash App account, you can opt in to earn a 2% annual yield without restricting your access to those funds. Consider consulting with a tax professional, as any Bitcoin rewards earned through this program are considered taxable income.
The takeaway
This feature allows users to earn 2% annually on their existing Bitcoin balance without sacrificing liquidity. If you opt in, track your total rewards carefully throughout the year, as you will need to report these earnings to the IRS as taxable income.
Further reading
For more on managing digital assets in your portfolio, see our guide to Investing.
Live Poll
Would you opt in to earn rewards by holding cryptocurrency in a digital wallet app?
