The ground-breaking and widely trusted Bitcoin custodian and licensed private bank, Xapo Bank, has achieved another “first”, with the news that it has joined forces with Lightspark to become the first bank to support Lightning Network payments.
This landmark development means that members of Xapo Bank – which is located at One Grand, Casemates Square in the British Overseas Territory – are now able to make low-cost and near-instant Bitcoin payments, simply by tapping a few screens using the Xapo Bank app.
What are Xapo Bank, Lightspark, and the Lightning Network?
In its relatively short history to date, the Xapo name has already made a serious impact. Xapo was launched as a highly secure Bitcoin storage product in 2014, followed in 2021 by the establishment of Xapo Bank.
A highly intuitive and responsive digital platform as well as a fully regulated bank in Gibraltar, Xapo Bank effectively combines traditional private banking with the digital currencies of the 21st century – the first institution to manage such a feat.
So, it should be no great surprise given such a track record of innovation in a short space of time, that Xapo Bank has now taken another major step forward. Specifically, it has worked alongside Lightspark – which builds infrastructure for the Lightning Network to help extend the capabilities and utility of Bitcoin – to bring even greater convenience to the lives of Xapo Bank members.
The Lighting Network is a second-layer solution – on top of the Bitcoin blockchain network – that serves as a decentralised payment network. It uses micropayment channels to scale the blockchain’s capability to carry out transactions with greater efficiency.
The Lighting Network, then, enables users to make transactions more quickly and affordably than would be the case if they were to depend on traditional methods, without the need for them to wait for multiple blockchain confirmations.
This means that Xapo Bank members are now able to make instant payments for small purchases – up to as much as $100 USD – at any vendor that accepts Lightning payments.
Another sign of how the crypto space in Gibraltar continues to go from strength to strength
With Xapo Bank and its members being strictly protected by UK and EU standard laws in the reputable jurisdiction of Gibraltar, under the Gibraltar Financial Services Commission (GFSC)’s authority, the business provides plentiful peace of mind to would-be and current members.
Xapo is the first fully licensed private bank to make available total real-time transactability in USD, in addition to investments in Bitcoin and USDC, via a single, secure, and easy-to-use account and app. This latest development in the bank’s history simply further underlines its credibility as a pioneering force helping to make its members’ lives easier.
Such a leap forward in the application of the latest blockchain solutions to benefit a wide range of users is also, of course, a signifier of Gibraltar’s continued renown as a focal point for the global crypto industry.
If you are engaged in the crypto sector as an individual or organisation, and you are interested in launching an AML-compliant token sale, or benefitting from other aspects of our expertise and support in relation to the blockchain, please don’t hesitate to enquire today to TAG Consultancy.