What's Going On With Block Stock On Friday?

Block, Inc. XYZ shares are trading higher in the premarket session on Friday.

On Thursday, the company announced that Square Financial Services, Inc, its industrial bank, has received approval from the Federal Deposit Insurance Corporation to offer the Cash App Borrow consumer loan product.

This approval enables SFS, an independently governed subsidiary of Block, to provide small, short-term loans to Cash App users, driving further economic empowerment.

Cash App Borrow, which has seen significant adoption with nearly $9 billion in originations in 2024, offers loans averaging less than $100 with a one-month duration.

These loans are designed to offer an affordable alternative to high-cost payday loans and overdraft fees.

Also Read: Block’s Square, Cash App Poised For 2H-Weighted Profit Growth: Analyst

The product maintains historically low loss rate of under 3%, with the majority of revenue coming from on-time paying customers.

As part of a gradual rollout, SFS will begin servicing and originating Cash App Borrow loans in the coming weeks, continuing to support both businesses and consumers with transparent and accessible financial solutions.

According to Benzinga Pro, XYZ stock has lost over 33% in the past year. Investors can gain exposure to the stock via VanEck Digital Transformation ETF DAPP.

Recently, the company was in the headlines for being the first company in North America to deploy NVIDIA’s DGX SuperPOD with DGX GB200 systems.

This deployment by Block, set for an Equinix data center, will be utilized to advance research and training in open-source generative AI models, focusing on novel solutions for underexplored areas.

This move follows Block’s launch of codename goose, an open-source AI agent framework, and signals the company’s continued commitment to AI-driven innovation.

Price Action: XYZ shares are trading higher by 2.63% to $55.46 premarket at last check Friday.

Read Next:

Image via Shutterstock.