Coinbase (NASDAQ:COIN) is rolling out support for the Lightning Network enabling instant, low-cost bitcoin transfers.
Users will have the option to choose between using Lightning for faster and cheaper bitcoin transactions, or processing their transaction on the traditional Bitcoin network.
This integration furthers their mission to “build a one-second, one-cent global payments system that provides affordable access to everyday financial tools.”
Today’s global payments system is far too slow and expensive “to adequately serve people across the world.”
For example, U.S. consumers paid “an estimated $75 billion in credit card transaction fees in 2022 alone and many transactions in the U.S. still take days to clear.”
Blockchain technology is “enabling faster, more secure payments at much lower costs than traditional finance.”
With the Lightning Network integration on Coinbase, the cost of sending BTC globally “is 20 times less than the average 2% charged on credit card transactions and a fraction of the $30 paid for wire transfers.”
The future of payments is crypto and Coinbase is committed “to building and scaling faster, cheaper, more secure payments across blockchain networks.”
By partnering with Lightspark to integrate the Lightning Network, Coinbase is demonstrating its support of Bitcoin while “remaining focused on decreasing both transaction times and fees.”
Until now, bitcoin transfers on Coinbase were “processed onchain which could take anywhere from 10 minutes to 2 hours and could be costly for users.”
The Lightning Network, built on top of Bitcoin, “enables instant off-chain bitcoin transfers at a fraction of the cost.”
Since its launch in 2017, the Lightning Network has “grown steadily, leading to an increase in demand from customers.”
With this integration, Coinbase customers “can now instantly send, receive, or pay with bitcoin on Lightning directly from their Coinbase account.”
As noted in the update, Bitcoin is one of “the most important assets in crypto and since our inception, we’ve continued to support the Bitcoin ecosystem through our exchange and numerous investments through Coinbase Ventures.”
Adding support for Lightning furthers the “growth of the crypto ecosystem by increasing everyday utility for millions of Coinbase customers.”
Coinbase is excited to continue improving “the traditional payments system with crypto. Faster and cheaper access to money is critical to bridging gaps in accessing financial tools, especially for underbanked and unbanked communities.”
These blockchain-based innovations will unlock capital that “is caught up in unnecessary fees and settlement delays, allowing consumers and businesses to do more with their money.”
Coinbase’s Lightning Network integration is “not available in all regions.”
The cost comparison between the Lightning Network and the traditional Bitcoin network “does not apply to all transfers.”
