Block Inc., the pro-Bitcoin company founded by Jack Dorsey, announced that it has surpassed $200 billion in loans issued through its Cash App, Afterpay, and Square Loans services. This impressive figure was made possible by an innovative approach to risk analysis based on behavioral data.
Block facilitates access to credit for millions of users through an innovative assessment mechanism
Block Inc., the company founded by Jack Dorsey, creator of the social network Twitter and also known for his commitment to Bitcoin, recently announced that it has granted over $200 billion in loans through its various platforms and services, such as Cash App Borrow, Afterpay, and Square Loans.
What is most surprising is not the volume of loans granted, but rather how these loans were distributed. Indeed, the Block group relies on its users’ behavioral data, rather than the traditional criteria for assessing repayment capacity used by conventional financial institutions.
While nearly 100 million Americans are excluded from traditional credit, Block uses internal data from its 58 million active users to create a “Cash App Score,” enabling a fairer assessment of repayment capacity.
As a result, the group has seen a 38% increase in loan approvals, without an increase in losses. Key figures include: 97% of microloans were repaid on Cash App, 96% of installments were paid on time through Afterpay, and 97% of loans granted to small businesses via Square Loans.
Ultimately, the group recorded a 38% increase in loan approvals without an increase in losses. Key figures include:
- 97% of Cash App Borrow microloans were repaid;
- 96% of Afterpay installments were paid on time;
- and 97% repayment rate for Square Loans to small businesses.
To date, Block has provided access to more than $200 billion in credit to customers across its global lending portfolio. Our approach to credit across the ecosystem leverages near real-time behavioral data that more accurately reflects consumers’ actual financial health and…
— Block (@blocks) January 20, 2026
Thus, Block demonstrates that it is possible to expand access to credit without compromising risk management or the institution’s financial security.
This model may, however, seem paradoxical in light of Bitcoin’s philosophy, which favors saving in a strong currency rather than resorting to debt.
Yet it is difficult to imagine the United States doing without credit as long as fiat currency remains the norm and the cost of living continues to rise. In 2025, U.S. households collectively held $18.5 trillion in debt, or more than $100,000 per household.
2025: The Year of the Rise of Bitcoin-Backed Collateralized Credit
While Block relies on behavioral data to grant credit, decentralized finance is simultaneously exploring another path: Bitcoin-backed collateralized loans, also known as “Lombard loans.”
In 2025, the market saw a proliferation of solutions allowing users to obtain liquidity in fiat currency or stablecoins without having to sell their digital assets, thereby avoiding a tax event. Some traditional banks, such as JP Morgan, now offer Lombard loans by accepting shares of spot Bitcoin ETFs as collateral.
Meanwhile, apps like Strike have democratized access to credit backed directly by BTC, although this method involves entrusting the custody of funds to the platform, as with any exchange platform.
But a new trend is emerging: offering these loans in the original spirit of Bitcoin, by returning to its core principles of decentralization and peer-to-peer transactions. Platforms like Lendasat are growing and attracting a larger audience by offering collateralized loans directly on-chain.
Their model relies on a multi-signature system, guaranteeing the borrower that their collateral remains locked—and is not transferred or rehypothecated—for the entire duration of the loan. This transparent mechanism also reassures lenders, who can monitor the presence and integrity of the collateral in real time, serving as assurance of repayment of the loaned funds and payment of interest.
