XYZ · Earnings call · 2026Q2T · Full report

Banking Regulatory Expansion

Block, Inc. · 2026-08-05 · Importance 40 · Surprise 42

Square Financial Services is expanding Block’s banking capabilities beyond lending into deposit-taking and acquiring. Management said SFS provides a direct connection to regulators, helping Block build trust and obtain feedback as it launches new products. SFS began processing its first Square acquiring transactions in June 2026, while deposits paying eligible sellers 3.5% APY are intended to become a larger, lower-cost funding source for lending over time.