Xapo Bank, the “fully” licensed bank that makes it simple for members to bank with Bitcoin, today announces that it has integrated further with the Lightning Network to facilitate Bitcoin deposits into members’ Bitcoin accounts.
The integration provides an additional method “to deposit Bitcoin from anywhere in the world, instantly with near-zero fees.”
The Lightning Network is “a Layer 2 protocol designed to enable off-chain Bitcoin transactions via smart contracts, substantially decreasing transaction times and fees.”
This recent development builds “upon the introduction of Lightning Network-enabled smaller payments on the Xapo Bank app last year.”
Highlighting a strong appetite for everyday use of Bitcoin, this service witnessed a 44% surge in usage from February to March 2024, with “a regional user base of 29% from Argentina and 14% from Brazil – countries that have historically been linked to high inflation.”
Seamus Rocca, CEO of Xapo Bank, commented:
“Xapo Bank is continuing to expand its services to amplify Bitcoin’s everyday applicability. We believe in the Lightning Network’s future as the primary avenue for Bitcoin transactions, especially for daily, small-scale exchanges. Our offering is truly unique. Not only can members spend their Bitcoin as easily as fiat, but they can also maximize their assets’ value through our competitive interest rates without needing to stake, lend, or lock up assets.”
David Marcus, CEO and Co-Founder of Lightspark, added:
“It’s clear that today’s Bitcoin users seek not only to store their wealth but also to integrate Bitcoin into their daily transactions seamlessly. The endorsement of instant Bitcoin deposits enabled by a regulated bank marks a significant milestone in global Bitcoin acceptance. Through the Lightning Network, we offer a cost-effective, swift, and user-friendly solution to historical barriers to access to Bitcoin.”
Marcus added:
“This is particularly effective within the framework of a regulated banking system, such as Xapo Bank, that upholds the security standards synonymous with traditional finance. We’re also excited that Xapo Bank customers can use UMAs (Universal Money Addresses) for fast, cheap, secure payment transfers with wallets like Ripio in Brazil and Argentina. UMAs make sending money as simple as sending an email, and this is a big step forward for always-on, interoperable payments between countries.”
Founded in 2013, Xapo Bank has evolved “from an e-money wallet into a digital-first bank that is regulated by the Gibraltar Financial Services Commission.”
A secure offering with a vast Bitcoin reserve treasury, Xapo Bank guarantees its members’ USD deposits up “to the US dollar equivalent of €100,000, providing a trusted avenue for financial growth.”
The new deposit feature enabled “by the Lightning Network will be available to all members.”
