Xapo Bank Integrates the Lightning Network

The Gibraltar-based cryptocurrency private bank Xapo Bank has integrated the Bitcoin Lightning Network (LN) micropayments network.

We are pleased to announce that we are the first bank to offer #LightningNetwork payments, through our partnership with @Lightspark.

Our members can now make faster, cheaper #bitcoin payments on the Xapo Bank app. Read more: https://t.co/Nu1AKgm2UT#XapoPrivateBank #blockchain pic.twitter.com/wryWUmIaIN

— Xapo Bank (@xapoprivatebank) March 2, 2023

“This means that Xapo Bank members can now make inexpensive and lightning-fast Bitcoin payments with just a few taps in the app,” the statement said.

Users will be able to pay for Lightning Network purchases up to $100 at any merchant that supports such capability.

Xapo implemented the option in partnership with Lightspark, founded by former head of Meta’s crypto division, David Marcus.

A big milestone for the Lightning Network. Welcoming the first bank on the network! Really thrilled to be supporting @xapoprivatebank implementation of Lightning for its customers. https://t.co/TiUeeyN5Rf

— David Marcus (@davidmarcus) March 2, 2023

“A major milestone for LN. We welcome the first bank on the network! We are excited to support Xapo Bank in implementing Lightning for its customers,” he wrote.

The Xapo startup was founded by Wences Casares in 2013 and became one of the first to offer simple and user-friendly Bitcoin wallets. In 2019, the custodian sold its institutional business to the crypto exchange Coinbase and focused on the retail market with a focus on developing countries.

In 2021, the company received a banking licence in Gibraltar. Xapo is also a principal member of Visa and Mastercard, as well as a member of SWIFT.

“We are now a fully fledged bank with a dollar-dominated correspondent account, which we believe is very attractive for developing markets. If you look at the United States or Europe, cryptocurrency is largely viewed as a form of gambling. Whereas in countries such as Argentina, Venezuela, Lebanon, Nigeria, where the currency is devalued and hyperinflation is possible, Bitcoin can change people’s lives,” he told CoinDesk CEO Xapo Simus Rokka.

In December, the British crypto exchange CoinCorner launched a fiat transfers service from the UK and the EU to Africa via LN.