(Explains Bitcoin wallet, adds background, quote)

June 4 (Reuters) – Fintech company Square Inc is considering developing a hardware wallet for Bitcoin, Chief Executive Officer Jack Dorsey said in a tweet https://twitter.com/jack/status/1400839179513339905 on Friday.

As Bitcoin and other cryptocurrencies rose in popularity, many companies have sprung up to meet a growing need to protect these assets from online theft.

Bitcoin wallets can be kept offline or online at cryptocurrency exchanges, places where Bitcoin can be bought and sold for traditional currencies or other virtual coins.

“If we did this, we would be developing it completely openly, from software to hardware design and in collaboration with the community,” said Dorsey.

Square’s shares were up 3%. The company has further increased its stakes on Bitcoin since it announced in February that it had invested $ 170 million more in the cryptocurrency. (https://reut.rs/34PFSZb)

(Reporting by Chavi Mehta in Bengaluru; editing by Shinjini Ganguli)