Coinbase, the largest U.S. cryptocurrency exchange integrating the Bitcoin Lightning Network
Lightspark, led by David Marcus, former president of PayPal, has been selected by Coinbase, the largest US cryptocurrency exchange, to integrate the Bitcoin Lightning Network into its platform. This integration is set to allow Coinbase customers to conduct instant and cost-effective Bitcoin transactions.
I’m happy to announce that. @Coinbase selected @Lightspark to activate #bitcoin Lightning network across platforms and services. Another important milestone for Lightning! ⚡Coming soon to millions of new people and over 100 countries! https://t.co/Dj5JDqdmOl
— David Marcus (@davidmarcus) April 3, 2024
“Coinbase is committed to making the global financial system faster and more efficient,” said Shan Aggarwal, Vice President of Corporate and Business Development. “We are excited to work with Lightspark to remove payment barriers and enable faster, cheaper Bitcoin transactions with support for the Bitcoin Lightning Network.”
Lightspark has devoted nearly two years to developing its platform as the best entry point to the Lightning Network to meet the needs of institutional clients looking for a reliable and efficient solution for Bitcoin trading. Integration with Coinbase includes Lightspark’s sophisticated tools and services, such as SDKs, APIs, and developer tools, that simplify the process of implementing and managing Lightning nodes.
One of the key aspects of the integration is Lightspark’s implementation of remote key signing. Here, Coinbase holds the Lightning signing keys and Lightspark hosts the Lightning nodes. This setup aims to ensure the scalability, stability, and optimization of the node infrastructure, allowing Coinbase to focus on providing an excellent user experience without the complexity of managing a large-scale Lightning implementation.
“It was a pleasure getting to know David and the entire team at Lightspark,” said Viktor Bunin, Coinbase Protocol Expert. “They’ve built great technology, they’re great to work with, and we’re excited to be working with them to launch Lightning support soon™.”
Today’s official announcement comes nearly a year after Coinbase CEO Brian Armstrong promised to integrate the Lightning Network into the exchange. Consolidation is now coming at a critical time, given the growing demand for efficient Bitcoin transactions amid rising Bitcoin prices and transaction fees. Coinbase facilitates $154 billion in quarterly trading volume across its platforms and will now further improve scalability by providing customers with access to cheap and efficient Bitcoin trading.
