Nubank Boosts Crypto Transactions with Lightning Network
Brazilian neobank Nubank partners with Lightspark to integrate Bitcoin’s Lightning Network, aiming to increase speed and reduce costs for its 100 million users across Latin America.
In a significant development for cryptocurrency in Latin America, Nubank, a leading Brazilian digital bank, has announced a partnership with blockchain solutions provider Lightspark to integrate the Bitcoin Lightning Network. This integration is designed to accelerate transaction speeds and cut costs, enhancing the overall digital transaction experience for Nubank’s extensive customer base, which totals nearly 100 million users, primarily in Brazil, Mexico, and Colombia.
The collaboration will leverage Lightspark’s expertise in developing blockchain infrastructure to enhance the scalability of crypto transactions. By introducing the Universal Money Addresses (UMAs), which function similarly to email addresses, this initiative simplifies sending and receiving money, making blockchain transactions as straightforward as sending an email.
David Marcus, CEO of Lightspark and a former PayPal executive, remarked on the importance of this integration, highlighting it as a “significant milestone” for the network, expected to dramatically impact network usage.
This sentiment was echoed by Thomaz Fortes, Executive Director of Nubank Cripto, who noted the integration aligns with Nubank’s ongoing mission to provide more efficient and cost-effective services through blockchain technology.
Nubank, which is supported by notable investors like Warren Buffet’s Berkshire Hathaway, first launched its cryptocurrency services in 2022, along with announcing the allocation of 1% of its net assets to Bitcoin. The bank also facilitates trading in 14 cryptocurrencies and partnered with stablecoin issuer Circle to enhance access to its USD Coin.
According to recent data from Kaiko Research, the majority of cryptocurrency trading in the region occurs in Brazilian real, with substantial volumes also in Mexican, Argentinian, and Colombian pesos, showcasing the growing role of digital currencies in Latin America’s financial landscape. This development reflects Nubank’s commitment to continuous innovation and its aim to meet the evolving needs of its customers in the digital economy.
