Gibraltar-regulated Xapo Bank has enabled bitcoin deposits for its customers via the Lightning Network.
In a statement shared with The Block, Xapo claimed it is the first fully licensed bank to do so — adding to its existing bitcoin deposit options by enabling instant deposits globally with near-zero fees.
“We believe in the Lightning Network’s future as the primary avenue for bitcoin transactions, especially for daily, small-scale exchanges,” Xapo Bank CEO Seamus Rocca said. “Not only can members spend their bitcoin as easily as fiat, but they can also maximize their assets’ value through our competitive interest rates without needing to stake, lend or lock up assets.”
The Lightning Network is a second-layer solution of payment channels built on top of the Bitcoin
BTC -2.14%
blockchain — designed to enable fast and low-cost transactions.
The move builds on Xapo Bank’s introduction of Lightning-powered pre-defined small payments of up to $100 in March 2023 in collaboration with Lightning Network infrastructure firm Lightspark.
“It’s clear that today’s bitcoin users seek not only to store their wealth but also to integrate bitcoin into their daily transactions seamlessly,” Lightspark CEO and co-founder David Marcus added. “The endorsement of instant bitcoin deposits enabled by a regulated bank marks a significant milestone in global bitcoin acceptance.”
Crypto exchange Coinbase also partnered with Lightspark to integrate the Lightning Network last month, joining rivals such as Bitfinex, OKX and Kraken among the increasing number of crypto firms offering support for the Bitcoin Layer 2.
Following the sale of its institutional custody business to Coinbase in 2019, Xapo pivoted to solely servicing global retail customers.
