This week marks another milestone for the Lightning Network as Xapo Bank became the first fully licensed bank to integrate the Lighting Network into their systems. The bank has been providing service to the market since 2013. The latest integration will improve performance and lower costs for all the bank's clients.
Discussing the upgrade, Xapo Bank CEO, Seamus Rocca, spoke on how Bitcoin has suffered from market congestion issues for years now. These issues caused a bunch of additional problems such as delays and higher fees. All of these factors limited Bitcoin adoption.
Xapo Crypto Perspectives
Rocca also took a moment to articulate on how cryptocurrencies represent different opportunities depending on where you live. He explained that in the US and Europe, most people are speculative trading hoping to secure wins. However, in developing nations, cryptos are a viable alternative to hyperinflation. Here, they're making a real difference in the average person's life.
The integration of the lighting network eliminates these problems for users. It makes Bitcoin more sustainable and scalable as it removes congestion from the mainnet which improves performance. Users can now send Bitcoin for pennies in seconds using the new system.
The Lighting Network brings a host of benefits to the Bitcoin network that must be mentioned. For one, it enables users to make micropayments. The original structure of the Bitcoin network made making small payments nonsensical as the fees were more than the amount you sent. The Lightning Network leverages private payment channels to reduce costs.
Let it Spark
To bring the plan to the market, Xapo partnered with Lighting Network infrastructure provider Lightspark. Lightspark provides a host of supportive services to those seeking to integrate the Lighting Network into their current or new systems. Notably, the network was spearheaded by former Facebook crypto lead, David Marcus.
Send Those Satoshis with Xapo
Xapo Bank clients can now pay for items using the Lighting Network. Currently, the system is available for purchases that are $100 or less. Any vendor that accepts Lightning Network is accepted across the globe.
Xapo Bank remains a pioneer in the crypto banking sector. The bank initially raised eyebrows when was among the first banks to secure a banking license with Bitcoin-related services and reserves. The bank also caught the attention of other crypto institutions and in 2019, Coinbase Custody purchased the network's institutional custody business.
Currently, the network operates as a fully Gibraltar-licensed private bank and cryptocurrency custodian. The bank offers an annual interest rate of 4.1% on USD holdings. Notably, the firm has a $100,000 deposit guarantee on fiat accounts. The bank also has partnerships with VISA and MasterCard.
Xapo Bank Setting the Pace
Xapo bank is far ahead of the pack. The developers were wise to take a regulatory-friendly approach to crypto trading. The network's integration of the Lightning Network will help to provide a better user experience and sustainability. You can expect to see the bank introduce more features as the Lighting Network expands Bitcoin's functionality considerably.