Xapo Bank integrated Bitcoin Lightning NetworkInternational private bank Xapo Bank has integrated the Lightning Network to improve its Bitcoin (BTC) payments environment. The organization's management officially announced a partnership with Lightning Network's infrastructure platform Lightspark.
The integration will provide faster and cheaper BTC transactions for Xapo Bank customers, reducing blockchain confirmation wait times and transaction fees on the Bitcoin network. According to the firm, Xapo Bank users will now be able to instantly pay for small purchases of up to $100 from any vendor that accepts Lightning Network payments. Large-volume transactions are not initially supported.
The new feature is introduced as part of Xapo Bank's app updates in the Apple Store and Google Store. According to Xapo Bank CEO Seamus Rocca, it can take up to 1 hour to confirm a BTC transaction during periods of heavy usage, which makes the cryptocurrency unsuitable for daily payments. According to him, by integrating the Lightning Network, Xapo Bank allowed customers to pay for goods and services with bitcoins without converting them to U.S. dollars (USD.
The average confirmation time on the Bitcoin network increased sharply in mid-February 2023. This happened amid massive activity due to the launch of the Ordinals protocol. The size of the mempool reached the level of November 2022. According to Ycharts data, BTC confirmation time reached about 600 minutes on February 19.
Rocca noted that BTC payments are especially important in times of hyperinflation, economic uncertainty and political turmoil. Gibraltar-based Xapo Bank is known for combining traditional banking with cryptocurrencies. The company previously held 800,000 BTC ($18.7 billion) in its accounts.
