Nubank, Brazil’s banking giant, has teamed up with Lightspark, a leader in Bitcoin Lightning Network infrastructure, to bring the lightning network to 100 million users, according to the bank’s announcement.
Nubank is looking at faster and cheaper transactions using the Lightning Network and potentially implementing UMA for a more unified user experience.
Built on top of the Bitcoin blockchain, the Lightning Network targets 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 for our customers and reinforce our long-term relationship with all of them.”
The initiative’s goal is to develop new blockchain-based features and services within the app. Nubank also wants to improve customer experience through blockchain technology.
“We’re excited to play a role in bringing Lightning to Nu’s 100 million customers and adding solutions to make their financial lives simpler 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 streamline transactions. According to the bank, the UMA is expected to enable a more user-friendly way to send and receive payments.
Nubank has been steadily building out its cryptocurrency capabilities over the past year. The Brazilian banking giant has offered cryptocurrency trading to its customers since late 2022. Nubank customers can buy and sell cryptocurrencies like Bitcoin and Ether.
In April 2023, Nubank implemented cryptocurrency withdrawals. Customers can now withdraw their crypto holdings from the platform.
In addition, the bank launched its own cryptocurrency token, Nucoin, as part of a customer loyalty program. The integration of the Lightning Network is seen as a way for Nubank to enhance the speed and scalability of its cryptocurrency services for its over 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 by 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 contributed to a 93% gain for the company in 2023, making it the best-performing investment in Berkshire’s $350 billion portfolio.
Lightning Network’s Adoption Up
Lightspark’s latest collaboration with Nubank marks another major development for the Lightning Network, especially after the company secured an agreement with Coinbase.
Earlier in 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 technology. The solution simplifies the Lightning Network integration process for large institutions like Coinbase.
Those partnerships open doors for broader cryptocurrency adoption. Smoother Bitcoin transactions through Lightning can pave the way for more payment use cases involving fiat and other cryptocurrencies.
Michael Saylor, the well-known Bitcoin advocate and executive of MicroStrategy, the leading corporate Bitcoin holder, has also shown support for the Lightning Network.
Michael Saylor has praised the Lightning Network many times in the past. In June 2022, he stated that Bitcoin and Lightning Network can rescue DeFi, not Ethereum.
The Lightning Network’s recent influence and adoption progress are 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 operates on the Strike payment platform, the Twitter social network (now X), Switzerland’s largest Bitcoin broker, Bitcoin Suisse, and Mexican retail giant Grupo Elektra.
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