Xapo Bank Adds Lightning Network Support

The popular decentralized banking solutions provider Xapo Bank recently integrated Lightning Network deposits as part of its larger blockchain strategy. This maneuver marks a major milestone for the Lightning Network as Xapo is the first fully licensed bank to offer LN deposits to users. As such, Xapo Bank remains a pioneering force in the Bitcoin community. Here's everything you need to know.

Xapo Bank Adds New Options

This latest upgrade enables Xapo users to enjoy near-instant Bitcoin deposits and reduced fees using the L2 solution. Lightning Network deposits cost a fraction of mainnet options, making them ideal for daily and micro transactions.

Source – Alephium

LightSpark

As part of the strategy, Xapo Bank partnered with LN infrastructure provider LightSpark. Lightspark is a popular LN solutions provider that has helped numerous platforms and companies expand their LN offerings in the past. As such, it was a wise option for Xapo to work with this established platform.

Xapo Bank – Strong Supporter

Xapo remains a strong supporter of the Lightning Network. The financial institution previously integrated support for LN payments which helped it establish itself as a viable option for those seeking lower fees and added performance. The feature, which allowed fast payments of up to $100 was a massive success.

Popular Option

Xapo Bank users embraced the LN payment option. According to bank officials, the feature saw a 44% increase in use between February and March of this year.  This increase highlighted the demand for these services and allowed Xapo to help serve normally underbanked communities.

Latin America on the Rise

One of the interesting findings that the Xapo Bank LN integration revealed was that Latin America continues to be a major supporter of Bitcoin and Lightning Network activities. The bank saw the greatest use of its Bitcoin services in Argentina and Brazil. In these locations, Bitcoin's primary use is to protect wealth against inflation.

Regulated Transactions

Xapo users enjoy the full protection of regulated transactions. The bank guarantees members’ deposits up to the U.S. dollar equivalent of €100,000. This added protection makes Xapo a valuable onramp for businesses seeking to enter the blockchain space in the region.

Discussing the integration, Lightspark CEO and co-founder, David Marcus, spoke on how the maneuver opens the door for daily adoption. He stated the most obvious takeaway from the data is that people want to “integrate Bitcoin” into their daily lives as fast as possible. Consequently, streamlining these actions will provide a great service to the bank's clients.

More LN Integrations

Xapo Bank isn't alone in its quest to expand LN integrations. North America's largest CEX (centralized exchange) Coinbase recently integrated the Lightning Network via a Lightspark partnership as well. Many analysts agree that these maneuvers signal more growth for Bitcoin's premier scaling solution.

Xapo Bank – Leading the LN Charge

Xapo Bank continues to set the pace for LN integration in the market. The bank's efforts continue to expand and its clients enjoy benefits that the competition can't provide including near-instant Bitcoin deposits. As such, it remains a pioneering project to watch moving forward.