Xapo Bank, a Gibraltar-based international private bank, integrates the Lightning Network to enhance its Bitcoin (BTC) capabilities.
On March 2, Xapo officially announced a partnership with the Lightning Network Lightspark infrastructure platform, which enabled the firm to implement Lightning on its platform.
The integration enables faster and cheaper transactions on Xapo, reducing blockchain confirmation wait times and transaction fees on the original Bitcoin network.
According to the company, Xapo Bank members will now be able to instantly pay for small purchases of up to $100 at any merchant that accepts Lightning payments. Initially, the integration does not support high volume transactions.
The new integration was introduced on February 27 as part of a new update to the Xapo Bank apps on the Apple Store and Google Store.
According to Xapo Bank CEO Seamus Rocca, confirmation of Bitcoin transactions can take up to an hour during periods of high usage, making BTC unsuitable for small daily payments such as purchases. By integrating with the Lightning Network, Xapo allows its customers to pay with Bitcoin without having to convert it to US dollars, he said.
Bitcoin’s mean confirmation time has experienced a huge rally in mid-February amid massive activity on the Bitcoin network, with the size of the mempool reaching November 2022 levels. According to data from Ycharts, the confirmation time of BTC reached almost 600 minutes on February 19.
Rocca also noted that Bitcoin payments are especially crucial in times of hyperinflation, economic uncertainty, and political turmoil.
Founded in 2013, Xapo operates a private bank as well as a Bitcoin custodian and wallet regulated by the Gibraltar Financial Services Commission. The company is known for combining traditional banking with cryptocurrencies by offering USD and BTC accounts in one place.
Xapo claims that at the height of its Bitcoin custodial activity, the firm was holding more than 800,000 BTC ($18.7 billion) for family offices, funds, and high net worth individuals. Such an amount of Bitcoin represents more than 4% of all BTC in circulation.
Clarification: The information and/or opinions expressed in this article do not necessarily represent the views or editorial line of Cointelegraph. The information presented here should not be taken as financial advice or investment recommendation. All investment and commercial movement involve risks and it is the responsibility of each person to do their due research before making an investment decision.
Investments in crypto assets are not regulated. They may not be suitable for retail investors and the entire amount invested may be lost. The services or products offered are not directed or accessible to investors in Spain.