Bitcoin digital asset infrastructure company BitGo has announced direct access to the Bitcoin Lightning Network through its qualified custody platform. This makes BitGo one of the first firms to offer Lightning payment capabilities for institutional custody. The new service enables users to conduct fast and low-cost Bitcoin transactions while maintaining institutional security standards. Built on BitGo’s previous self-custody Lightning solution, this advancement is powered through a partnership with Lightning network infrastructure provider Voltage, eliminating the need for users to run nodes or manage keys. BitGo and Voltage handle infrastructure, channels, liquidity, and key management.
Using simple APIs, customers can create Bitcoin wallets, send payments, generate invoices, and keep transaction records. The platform is fully integrated with BitGo’s existing wallet infrastructure, policies, and permissions. By removing the typical challenges associated with managing nodes, channels, liquidity, and keys, BitGo allows institutions minimal setup and operational burden to access the Lightning Network.
BitGo, together with Ripple, Circle, Fidelity Digital Assets, and Paxos, has received conditional approval from the U.S. Office of the Comptroller of the Currency (OCC) to become a federally chartered national trust bank. This transition from state to federal oversight will facilitate nationwide fiduciary and digital asset custody services, enhancing regulatory acceptance and institutional trust in cryptocurrencies.
This development comes as the Bitcoin Lightning Network reaches its highest capacity in history. Institutional investment has driven capacity growth in recent months, although user and node counts have increased more modestly, highlighting a gap between usage and investment. Other progress includes investments in Lightning startups like Tether and updates from Lightning Labs aimed at expanding the network beyond micropayments to larger financial transactions.
BitGo CEO Mike Belshe stated that providing institutional custody access to Lightning enables customers to focus on innovation rather than infrastructure, increasing Bitcoin’s practical relevance for everyday payments.
Source: bitcoinmagazine
