Fintech
Brazil’s Largest Fintech Bank Integrates Lightning Network
Nubank, the Brazilian banking giant, has made a team with Lightspark, the leader in Bitcoin Lightning Network infrastructure, to bring the Lightning Network to 100 million users, according to the bank’s announcement.
Nubank is seeking faster and cheaper transactions using the Lightning Network and potentially implementing UMA for a more unified user experience.
Built on the Bitcoin blockchain, the Lightning Network aims for faster and cheaper Bitcoin transactions through a network of bilateral payment channels. The collaboration focuses on integrating the Bitcoin Layer-2 solution into the Nu app.
Faster transactions
According to Thomaz Fortes, Executive Director of Nubank Crypto, the partnership with Lightspark “is another step in Nubank’s mission to provide the best solutions to our customers and strengthen our long-term relationship with all of them.”
The goal of the initiative is to develop new blockchain-based features and services within the app. Nubank also wants to improve customer experience through blockchain technology.
“We are excited to play a role in bringing Lightning to Nu’s 100 million customers and adding solutions to make their financial lives easier and more efficient,” said David Marcus, CEO and co-founder of Lightspark.
As part of the integration, Nubank will develop Universal Money Addresses (UMA) to simplify transactions. According to the bank, UMA is expected to enable a more intuitive way to send and receive payments.
Nubank has steadily developed its cryptocurrency capabilities over the past year. The Brazilian banking giant has been offering its customers cryptocurrency trading since the end of 2022. Nubank customers can buy and sell cryptocurrencies like Bitcoin and Ether.
In April 2023, Nubank implemented cryptocurrency withdrawals. Customers can now withdraw their cryptocurrency holdings from the platform.
Additionally, the bank launched its own cryptocurrency token, Nucoin, as part of a customer loyalty program. The Lightning Network integration is seen as a way for Nubank to improve the speed and scalability of its cryptocurrency services for its more than 100 million customers.
Nubank is also known for its backer, Berkshire Hathaway, the investment conglomerate led by Warren Buffett. In June 2021, Berkshire invested $500 million in Nubank leading an extension of the company’s Series G funding round.
When Nubank went public in December 2021, Berkshire acquired an additional 30 million shares for $250 million, bringing its total investment to $750 million.
Berkshire Hathaway’s investments in the bank have contributed to a 93% gain for the company in 2023, making it the best-performing investment in Berkshire’s $350 billion portfolio.
Lightning Network adoption increases
Lightspark’s latest collaboration with Nubank marks another major development for the Lightning Network, especially after the company landed a deal with Coinbase.
In early April, leading exchange Coinbase announced its partnership with Lightspark to bring Lightning Network to its platform. The partnership allows Coinbase users to experience faster and cheaper Bitcoin transactions.
As noted, Lightspark offers a user-friendly solution for complex technologies. The solution simplifies the Lightning Network integration process for large institutions like Coinbase.
These partnerships open the doors to wider cryptocurrency adoption. Smoother Bitcoin transactions via Lightning may pave the way for more payments use cases involving fiat and other cryptocurrencies.
Michael Saylor, the well-known Bitcoin supporter and executive of MicroStrategy, the main Bitcoin holding company, also showed support for the Lightning Network.
Michael Saylor has praised the Lightning Network many times in the past. In June 2022, he said that Bitcoin and Lightning Network can save DeFi, not Ethereum.
The recent influence and progress in Lightning Network adoption is still impossible to deny. The solution is widely used in El Salvador, the first country to accept Bitcoin as legal tender.
The Lightning Network also works on the Strike payment platformthe social network Twitter (now X), That of Switzerland the largest Bitcoin broker, Bitcoin Suisse and the Mexican retail giant Grupo Elektra.