Jack Dorsey Confirms Block On Track To Become Large Bank-Like Institution: Here's What's Driving It

Block Inc SQ founder Jack Dorsey confirmed to venture capitalist Vinod Khosla on Monday that the fintech company is on its way to being among the largest "bank-like" institutions in terms of account holders.

What Happened: Khosla had posted a link to a Wall Street Journal and said that Block was on the "path to be among the largest bank-like institutions in number of account holders."

See Also: How To Buy Block (SQ) Stock

Why It Matters: Direct deposits and deposits of paper money accounted for 14% of inflows in the third quarter compared with 9% a year earlier for Block, noted the Journal.

The report noted that when Block's Cash App has people regularly putting money into their accounts, these customers can be monetized more regularly. They can use it to make purchases, trade stocks and buy cryptocurrencies such as Bitcoin BTC/USD.

Block's third-quarter revenue rose 17% year-over-year to $4.52 billion beating the average analyst estimate of $4.5 billion, according to data from Benzinga Pro. 

Cash App generated $2.68 billion in revenue and garnered $774 million in gross profit.

Read Next: Bitcoin Crash, Weak Demand Pull Down Jack Dorsey’s Cash App Crypto Profit By 12% In Q3

Photo courtesy: TED Conference on Flickr