Breez Announces FiatLink: From Lightning to Fiat API Standard
Today, Breez announced FiatLink, an open API standard for integrating ramps and ramps directly inside Lightning wallets and applications. There are currently many challenges in seamlessly integrating Bitcoin and fiat exchanges within the application, the most significant of which is the lack of Lightning support from many brokerages. Additionally, each brokerage service on the market builds proprietary APIs for service integration, increasing the overhead for application and wallet developers to integrate multiple options. Breez SDK support for the FiatLink API allows you to leverage a single solution to both problems.
FiatLink, an open interface standard, allows you to seamlessly integrate multiple brokerage options within your Lightning application or wallet. Instead of having to independently integrate the individual APIs of each option, brokerage services with FiatLink integration can be used within the application without additional development overhead. This can help create an interoperable ecosystem of multiple brokers and multiple applications seeking the optimal price point for matching between users who need to acquire fiat currency or Bitcoin. Swiss Bitcoin operators such as Relai and Pocket Bitcoin have been consulted on adapting their API design to meet the needs of existing brokerage services.
Various payment options (SEPA, credit card, bank transfer) are supported. The API provider allows users to request price and cost estimates, a final quote, and finally confirm the specific order quote and finalize it by entering payment information. In Switzerland, users can trade up to 1000 CHF (Swiss Francs) per transaction between Swiss brokerages and regulated non-Swiss banks without requiring any additional KYC beyond the payment method.
Withdrawals from brokerage services to user wallets are processed via LNURL-Withdraw. This is a feature of the LNURL protocol that allows users to store and scan static QR codes at their leisure, which are then negotiated in the background via HTTP providing an actual illuminated invoice to receive Bitcoin. You can include an optional on-chain address to facilitate on-chain withdrawals if they are not processed through Lightning for any reason.
The API supports Address Proof of Ownership Protocol (AOPP), which is required by some jurisdictions under travel rules, but for Lightning wallets and applications, you can generate a random Lightning node public key to use for a single withdrawal.
If FiatLink is widely adopted, it could provide a competitive and efficient solution for integrating fiat to Bitcoin transfers for wallet and application developers to integrate.
