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On 2 March, Xapo Bank announced its partnership with Lightspark, a company run by David Marcus, Facebook's former crypto boss. The partnership aims to expand the usefulness of bitcoin and lightning net. Xapo revealed on Thursday that it is the first private bank fully allowed to offer payments via the lightning network.
Xapo CEO Sees Lightning Network Integration as a Solution to High Fees and Long Transaction Times
has Lightspark to integrate the Lightning Network, according to an announcement sent to Bitcoin.com News. The company, established in 2013, has clarified that its customers can now pay for small purchases of up to $100 from any supplier that accepts lightning network payments. Moreover, xapo offers interest-bearing USD bank accounts, with plans to soon offer the same for Bitcoin. Seamus Rocca, CEO of Xapo, feels that using the Lightning network can help customers avoid long wait times and extra costs.
“The average one-hour transaction confirmation time combined with potentially high fees during periods of high usage make the Bitcoin network inappropriate for such small daily payments as the grocery store," Rocca said in a declaration. By joining the hyper-effective Lightning network, we are the world's first bank to streamline this process and allow our members to pay for small purchases with Bitcoin without having to convert to USD first. '
In parallel, the payment company of Jack Dorsey, Block, has launched a new Lightning Network service provider called "." The c= venture points out on the website that it is in partnership with portfolios, companies and lightning nodes. Over the announcement xapo-lightspark, rocca said that "in a context of hyperinflation, economic uncertainty and political unrest," the demand for Bitcoin payment integrations continues to grow. "we need integrations like this one that open access to bitcoin payments," xapo CEO stressed.
To use the Lightning Network via Xapo, clients need to have bitcoin (BTC) in their Xapo Bank App. After that, users can scan a flash network bill and pay any merchant with the app. Xapo indicated that the network will bill a few satoshis for the transaction. David Marcus, CEO and co-founder of lightspark, said xapo has been a closed beta partner of the company.
“We’re delighted they chose Lightspark’s enterprise-grade solution to reliably send and receive payments on the Lightning Network without all the complexity and operational overhead that typically comes with running a node on it,” Marcus said. At the time of writing, the Lightning Network has a total capacity of 5,421.53 .
What are your thoughts on Xapo Bank’s Lightning Network integration? Let's hear from you in the comments section below.
