On March 2, Xapo announced that it had partnered with Lightning Network infrastructure platform Lightspark to implement Lightning on its platform. The 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 will now be able to instantly pay for small purchases of up to USD 100 at any merchant that accepts Lightning payments. Initially, however, the integration does not support large-volume transactions. The new integration was introduced on February 27 as part of a new update to the Xapo Bank apps in the Apple Store and Google Play Store.
Xapo Bank CEO Seamus Rocca noted that Bitcoin transaction confirmation can take up to an hour during periods of heavy usage, making BTC unsuitable for small everyday payments such as shopping. By integrating the Lightning Network, Xapo allows its customers to pay with Bitcoin without having to convert it to US dollars, resulting in cost savings. Rocca also noted that Bitcoin payments are especially crucial in times of hyperinflation, economic uncertainty, and political turmoil.
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, offering USD and BTC accounts in one place.
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