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Xapo Bank Launches Bitcoin Deposits via Lightning Network

source-logo  coinspress.com 24 May 2024 09:37, UTC

Xapo Bank, based in Gibraltar, has announced the introduction of bitcoin deposits through the Lightning Network, becoming the first fully licensed bank to do so.

This new feature allows for instant and low-cost global Bitcoin transactions.

CEO Seamus Rocca highlighted the future potential of the Lightning Network for everyday transactions, enabling users to spend BTC as easily as traditional currencies while earning competitive interest rates without having to stake or lock up their assets.

The Lightning Network enhances Bitcoin transactions by providing a second-layer solution for fast and inexpensive payments. Xapo previously rolled out Lightning-powered small payments up to $100 in March 2023 with Lightspark’s support.

Lightspark CEO David Marcus noted that integrating Bitcoin into daily transactions is a growing trend, and Xapo’s new feature represents a significant step in broader Bitcoin adoption.

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Xapo’s shift to retail customers followed the sale of its institutional custody business to Coinbase in 2019. The bank reported a 44% increase in Lightning Network payment usage from February to March 2024, with high adoption rates in Argentina and Brazil due to inflation challenges.

Data shows that Lightning Network capacity rose by over 60%, from $217 million in February to $349.4 million by May, reflecting Bitcoin’s price increase. Xapo Bank also ensures its members’ USD deposits are protected up to €100,000, with the new Lightning deposit feature now available to all users.