Gibraltar-Based International Private Bank Xapo Bank Has Integrated Lightning Network to Boost Its Bitcoin Capabilities. On March 2, Xapo officially announced a partnership with Lightning infrastructure platform Lightspark, which will enable the company to implement the Lightning Network on its platform.
This integration enables faster and cheaper transactions on Xapo, reducing blockchain confirmation wait times and transaction fees on the original Bitcoin network.
According to the company, Xapo Bank members can now instantly pay for small purchases of up to $100 at any vendor that accepts Lightning Payments. The integration initially does not support high-volume transactions.
The new integration rolled out on February 27th as part of a new update to Xapo Bank's app on the App Store and Google Play Store. According to Xapo Bank CEO Seamus Rocca, Bitcoin’s transaction confirmation can take up to an hour during periods of high usage, making BTC unsuitable for small, everyday payments like groceries. By integrating the Lightning Network, Xapo allows its customers to pay with bitcoin without having to convert it into dollars, he said. Bitcoin’s average confirmation time spiked significantly in mid-February due to heavy activity on the Bitcoin network, and the mempool size reached November 2022 levels. According to YCharts data, the BTC confirmation time reached nearly 600 minutes on February 19.
Rocca also noted that bitcoin payments are especially important during times of hyperinflation, economic uncertainty, and political unrest.
Founded in 2013, Xapo operates a private bank as well as a bitcoin custodian and wallet regulated by the Gibraltar Financial Services Commission. The company is known for combining traditional banking with cryptocurrencies by offering USD and Bitcoin accounts in one place.
Xapo claims that at the peak of its bitcoin custody, the firm held more than 800,000 bitcoin ($18.7 billion) for family offices, funds and high-net-worth individuals. This amount of bitcoins represents more than 4% of all bitcoins in circulation.
