Coinbase Plugs Into the Bitcoin Lightning Network

Coinbase is introducing support for the Bitcoin Lightning Network on its platforms, offering users the option to send Bitcoin using either the main Bitcoin network or the faster, layer-2 Lightning Network. This integration is facilitated by Lightspark, a Los Angeles-based company specializing in Lightning Network solutions for enterprises. Coinbase aims to enhance security and user experience by collaborating with a non-custodial partner like Lightspark.

Coinbase customers can easily switch between Bitcoin Core and the Lightning Network by providing a Lightning invoice address during transactions. This service is custodial, similar to other asset custodies at Coinbase, meaning users don’t need to manage nodes or liquidity concerns; these are handled by Coinbase and Lightspark. The integration is part of a broader effort to promote crypto adoption and economic freedom, although it's initially unavailable to residents of Canada and New York.