Cash App is only available in the US and UK. It targets households earning <$150K. In Q2 Cash App did 4B in revenue. Monetization rate
was up 9 bps YOY due to Cash App borrow. 

Users are effectively paying 65% APR for these loans. Compare that to the borrow rate of your favorite lend/borrow protocol. 

"...on average, a Borrow loan is less than $100 and one month in duration, which is much smaller and shorter-term than what a typical bank can offer...has resonated well with our customer base, with more than $2 billion in originations in the second quarter, up nearly 3x year over year."

These are undercollaterized loans but can't help but think crypto rails would enable Cash App to reach a global audience AND drive these borrow rates down for consumers.

Contributing to OP Labs. Come join me on the track if you’re in /austin @ atxsprint.club

DeFi could help lower rates by opening loan origination to global liquidity providers.

For Cash App users holding crypto: Even better. Their crypto holdings could serve as collateral, unlocking lower rates through overcollateralized lending.

Notably, there's a compelling data moat here, Cash App can underwrite undercollateralized loans because they already see their user's income & spending patterns. Can't just build this as a standalone product - the payment relationship IS the risk assessment moat.

Lead with payments, monetize with credit.