Coinbase Adds Support for Bitcoin Lightning Network

The largest US cryptocurrency exchange, Coinbase, has added support for the Lightning Network on its platform to enable faster and cheaper payments.

according to Blog postthe Lightning Network integration on Coinbase will reduce the cost of sending Bitcoin (BTC) globally by 20 times compared to the 2% charged on credit card transactions in the US and the $30 charged for wire transfers.

Coinbase integrates Lightning Network

Coinbase's Lightning Network integration was led by Lightspark, a lightning infrastructure provider led by David Marcus, co-founder of payments giant PayPal. The cryptocurrency exchange partnered with Lightspark earlier this month when it announced plans to move forward with Lightning integration.

The high cost and delay of traditional payment systems has prompted Coinbase's plans to enhance its payment offerings with blockchain technology. The company revealed that American consumers spent nearly $75 billion on credit card transaction fees in 2022, and what's worse is that most of these fees were delayed by several days.

Since the future of payments is cryptocurrencies, Coinbase said it is committed to enabling faster, cheaper and more secure payments through blockchain technology with Lightning Network integration. Customers can now execute Bitcoin transfers instantly, instead of the ten minutes to two hours it took to process cross-chain transactions in the past.

“Coinbase is excited to continue revolutionizing the traditional payments system with cryptocurrencies. Access to money faster and at a lower cost is critical to closing gaps in access to financial instruments, especially for underbanked and unbanked communities.

The company stated that these blockchain-based innovations will unleash capital trapped by unnecessary fees and settlement delays, allowing consumers and businesses to do more with their money.

Not available in all regions

Notably, Coinbase's Lightning Network integration is not currently available in all regions. Information about the stock exchange's help center Offers Users in New York and Canada cannot access the service at this time. Also, the cost difference between Bitcoin and Lightning Network does not apply to all Coinbase transfers.

Meanwhile, Coinbase is not the only cryptocurrency exchange to have added support for the Lightning Network. Binance, the world's largest exchange, did the same in July 2023, joining Kraken, Bitfinex, and OKX.