Xapo Bank leverages Lightspark and the Lightning Network for enhanced Bitcoin-enabled banking for members
“Our integration with Lightspark enables us to mitigate the long confirmation times and potentially high fees associated with the Bitcoin network, making it easier for members to conduct small, daily transactions with their Bitcoin. By eliminating the need to convert Bitcoin into USD for every transaction, Xapo has become the first bank to offer a quicker, cheaper, and more accessible payment process for everyday purchases like groceries.
In today’s uncertain economic climate, where Bitcoin serves as a hedge against inflation, integrations that make Bitcoin payments easy are crucial. Our work with Lightspark underscores our unwavering dedication to delivering tangible solutions that make banking with Bitcoin simple, while also preserving and growing our members’ wealth.”
Seamus Rocca
About
As the world’s first Bitcoin-enabled bank, Xapo Bank is continually redefining the Bitcoin experience for its members by empowering them to manage, grow, and diversify their Bitcoin holdings seamlessly. Continuing its mission to make Bitcoin management simpler than ever before, Xapo Bank gave its members access to the Lightning Network — another world first.
This integration means that Xapo Bank has tackled the shortcomings of the traditional Bitcoin network by leveraging Lightspark and giving its members access to the fastest and cheapest way to transact Bitcoin with the Lightning Network. With Lightspark's products, they've developed an open, interoperable, and affordable solution that can instantly scale and settle transactions.
Xapo’s banking app is the first in the world to give access to US dollar and Bitcoin accounts together
Challenge
Traditional transactions on the Bitcoin blockchain could take over an hour, with fees reaching as high as USD 20. These were significant barriers to Xapo Bank's vision of enabling members to transact Bitcoin with uncompromised ease and efficiency. To solve this, Xapo Bank needed a partner with deep expertise and a commitment to the Lightning Network to make this vision a reality.
After an initial meeting with detailed insight and solution-based thinking, Xapo Bank selected Lightspark as their partner, impressed by its proven track record and professionalism. Additionally, Lightspark's rapid execution speed in assisting Xapo Bank with preparing a plan to implement Lightning was a critical factor in their decision.
Solution
The integration of the Lightning Network has made a massive difference in how Xapo Bank handles Bitcoin transactions. Here are the key outcomes:
- Significantly Enhanced Transaction Time
With Lightspark’s implementation of the Lightning Network, Xapo Bank reduced the time it took to make a Bitcoin transaction from over an hour to almost instant. - Cost Reduction
It significantly reduced transaction fees to make sending smaller transactions and micropayments much more cost-effective. - Operational and Profitability Boosts
The enhanced efficiency and cost reductions significantly increased the total payment volume processed through Xapo Bank. - Universal Money Address Integration
Universal Money Addresses (UMA) is a groundbreaking payment method powered by the Lightning Network that makes cross-border transactions fast, user-friendly, and accessible. Xapo Bank customers can send money globally, 24/7, in the currency of their choice.
Xapo’s integration of Lightspark’s Connect SDK and Predict in the app for fast and low-cost Bitcoin transactions on the Lightning Network
Outcome
As the first regulated bank in the world to offer access to Lightning Network transactions, Xapo Bank has solidified its position as a leader in the industry. The Lightning Network is already improving the brand's recognition among the Bitcoin and banking spaces, drawing in new members who want to experience Bitcoin innovation safely and securely, and with more freedom and flexibility than ever before.
Integrating Lightspark into Xapo Bank’s services made transactions faster and cheaper, improving the overall banking experience for Xapo Bank members.
