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Chronicles

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Coinbase adds support for the Bitcoin Lightning Network via payments startup Lightspark, letting customers transfer bitcoin faster and at a lower cost

Derek Andersen / Cointelegraph :

Cointelegraph Derek Andersen

Context & Ripple Effects

Lightning has moved from an early scaling approach—a live-network test among Lightning developers and later software beta releases—toward exchange integrations. Lightspark entered that transition as a payments startup built on the network in 2022.

Coinbase's move follows Binance's completed Lightning integration, making the infrastructure question less about technical availability and more about whether large customer-facing platforms make lower-friction bitcoin transfers a standard feature.

First-order effects

  • Coinbase customers gain a Lightning-enabled route for bitcoin transfers, with the stated benefit of faster, lower-cost movement of bitcoin.
  • Lightspark becomes the integration partner supplying Coinbase's Lightning connectivity, extending its role from network-focused payments startup to exchange infrastructure provider.

Second-order effects

  • Large exchanges that have not added Lightning support face a clearer product-comparison issue, since Binance had already completed its own integration.
  • The move can shift more transfer activity toward Lightning-capable wallet, payments, and infrastructure providers, while making transfer speed and cost more visible dimensions of exchange service.

Third-order effects

  • If major exchanges continue to adopt Lightning, bitcoin transfer infrastructure may increasingly be delivered as an embedded platform capability rather than a specialist user feature.
  • The pattern points to competition moving beyond asset access toward transaction experience; its durability will depend on whether customers consistently use these lower-friction transfer routes.

The trend: Crypto exchanges are progressively embedding payment-layer infrastructure to differentiate on the speed and cost of moving digital assets.

Discussion

  • @brian_armstrong Brian Armstrong on x
    Excited to be live on the #Bitcoin Lightning network - let's get every transaction under 1 second and 1 cent to bring in the next wave of adoption. And huge shout out to @lightspark for the excellent partnership. 🙏
  • @davidmarcus David Marcus on x
    And... It's live ⚡🚀! Welcome to moving #Bitcoin at the speed of light, @Coinbase! We're so thrilled to be part of this journey with you to bring Lightning to 100s of millions of people in over 100 countries. Big milestone for the entire network and for Bitcoin. Let's go!
  • @lightspark @lightspark on x
    🤝
  • @coinbase @coinbase on x
    Starting today, support for the Lightning Network via @lightspark will begin rolling out. Enjoy instant, low-cost BTC transfers. Learn more: https://www.coinbase.com/... [video]
  • @scottshapiro @scottshapiro on x
    I no longer need to run my Lightning node anymore because Coinbase does it so much better ⚡️ [image]
  • @kphur Kevin Hurley on x
    Thrilled to share that @coinbase has begun rolling out support for the #Bitcoin Lightning Network, powered by their partnership with us @Lightspark. Coinbase customers can instantly send, receive, or pay with Bitcoin on Lightning directly from their accounts. So proud of our team…
  • @vdurmont Vincent Durmont on x
    I am very excited to share @coinbase has begun rolling out support for the #Bitcoin Lightning Network, powered by their partnership with us @lightspark 🤝 Coinbase customers can instantly send, receive, or pay with Bitcoin on Lightning directly from their Coinbase account. I... [v…
  • @viktorbunin Viktor Bunin on x
    I'm thrilled to announce that Lightning ⚡️ is now live on @Coinbase! I could not be more proud of the team for shipping it so quickly. Growing Bitcoin adoption increases economic freedom in the world. This is my personal life mission and the mission for all of us at Coinbase.
  • @gt Geoff Teehan on x
    Starting today, @coinbase customers can instantly send, receive, or pay with Bitcoin on Lightning directly from their accounts. @lightspark makes implementing Lightning easy, and the Coinbase design team made the experience look and work flawlessly. Crypto needs more companies...