Square has been awarded a patent for a payment network that will allow individuals holding various types of of assets to transact with each other in real-time. The application reads:
“The present technology permits a first party to pay in any currency, while permitting the second party to be paid in any currency.”
According to a CoinDesk report, the documents indicate the platform will instantly exchange a sender’s payment into any asset that has been indicated by the recipient. As per the filing, the new platform will be vital in the retail sector. The firm argues that most of the cryptos are highly volatile and take time before they can be effective payment solution. In this regard, only a handful of merchants are willing to accept a payment solution that takes too long before being processed while the value could still swing wildly.
Square aims at removing such obstacles with a platform that comes with instant exchange as well as real-time settlements. The platform will allow customers to pay using their preferred asset while merchants will choose the asset they prefer to get receiving a full value of it. The filing also indicates that the system has the capacity to be expanded to include other asset categories such as securities, loans as well as derivatives.
In 2018 Square integrated Bitcoin and the firm’s founder, Jack Dorsey, has on numerous occasions stated that in a few years bitcoin will be a favored currency used on the internet space. However, Square has been reluctant to add other cryptocurrencies. Last summer Square’s crypto team was asked if there were plans to add support for different cryptos and stated that the company will only support Bitcoin and will actively advocate the development of the network as well as mainstream adoption.
In a blog post, Square also revealed that it is set to launch a ‘Lightning Development Kit’ which will allow wallets as well as app developers to come up with layer-2 solutions which will be built on top of Bitcoin protocol.