• Private bank Xapo Bank partners with Lightspark to enable near-instant bitcoin payments for its customers.
• The Lightning Network enables scalable payments at millions of transactions per second across the network, reducing waiting times and costly experiences.
• Xapo Bank offers an annual interest rate of 4.1% on US dollars and will soon be offering up to 1% on Bitcoin.
Xapo Bank & Lightspark Partnership
Gibraltar-licensed private bank Xapo Bank has partnered with Lightspark, the startup spearheaded by former Facebook crypto lead David Marcus, to integrate the Lightning Network and enable near-instant bitcoin payments for its customers. Xapo Bank members can now make small purchases of up to $100 USD at any vendor that accepts Lightning payments, without high transaction fees and long blockchain confirmation waiting times. This integration will make Xapo Bank the first fully licensed private bank to offer Lightning payments.
The Lightning Network enables scalable payments at millions of transactions per second across the network, reducing the time-consuming and costly experiences often faced by users who pay for small transactions in bitcoin. Seamus Rocca, CEO of Xapo Bank, said in regards to the partnership: “By integrating with the hyper-efficient Lightning Network, we are the first bank in the world to streamline this process and allow our members to pay for small purchases with Bitcoin without having to convert to USD first.”
Interest Rates Offered By Xapo
Xapo Bank offers an annual interest rate of 4.1% on US dollars and will soon be offering up to 1% on Bitcoin, paid out daily. David Marcus commented on this development: “We’re thrilled to enable the first bank on the Lightning Network to offer instant, cheap Bitcoin payments to its customers.” Marcus added that Xapo was one of their early closed beta partners for Lightspark’s enterprise grade solution which allows reliable sending/receiving payments on Lighting Network without complexity or operational overhead associated with running a node thereon.
Making Payments With The Lighting Network Via The App
Xapo Bank members can pay via the Lighting Network by holding bitcoin in their app and scanning/paying invoices at any merchant that accepts Lighting payment option therein; however there is a fee incurred each time a transaction is executed –15 sats fee has been set by XAPO bank so as its members are shielded from executing transactions with higher fees than those set by them due too market volatility etcetera.
In conclusion, through this partnership between Lightspark & XAPO bank it has become possible for individuals & businesses alike use lightning technology as a payment option which is faster & more efficient than traditional methods such as credit cards & checks due too its ability process multiple transactions simultaneously coupled with lower processing fees compared thereto; moreover xapa provides an additional incentive through offering attractive interest rates if users choose too store funds using their services