Coinbase Plugs Into the Bitcoin Lightning Network

By Matt Brienen

Published: 2024-04-30T16:13:01+00:00

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.