BitGo, an OCC-regulated digital asset trust bank, has introduced Lightning Earn, a new product that allows corporate bitcoin treasuries and institutional allocators to stake their bitcoin as liquidity on the Lightning Network and earn bitcoin-denominated routing fees.
The offering is based on an integration with Amboss Technologies’ Rails product, a Lightning infrastructure platform that allows participants to capture routing costs by routing payments and leasing liquidity over the network. BitGo, a subsidiary of BitGo Holdings, Inc. (NYSE: BTGO), said the integration gives institutional clients access to the Lightning Network infrastructure without sacrificing custodial or governance standards.
Through the BitGo-Amboss integration, customers deploy bitcoin into Lightning Network channels. These funds then route payments through the network and provide liquidity to new payment destinations.
In return, participants receive compensation denominated in bitcoin – and not in a third-party token, synthetic instrument or yield product.
BitGo said its existing security controls, operational workflows and governance infrastructure will be transferred to the Lightning Earn product, giving institutions the compliance framework they need to participate.
BitGo deploys its own treasury
The bank has deployed part of its own bitcoin treasury into Amboss Rails, a move the company described as a direct expression of confidence in the product.
“We believe Rails offers our customers a credible way to stake their bitcoin without compromising custody or governance,” said Mike Belshe, CEO and co-founder of BitGo. “We have committed some of our own resources to Rails, and we are pleased to offer this capability to the institutions we serve.”
The decision to allocate corporate funding indicates that the company views Lightning Earn as more than a customer-facing product. It also positions the company alongside its customers in terms of exposure to the Lightning Network routing economics.
Amboss CEO Jesse Shrader said the partnership marks a turning point for institutional participation in the Lightning Network.
“BitGo’s integration of Rails sends a clear signal that Lightning is right for institutions,” said Shrader. “With the capital injected by BitGo and their customers, Bitcoin can offer enterprise-scale instant payments while reaping the benefits of Lightning proliferation.”
Amboss builds data, software, and infrastructure products for the Lightning Network, with Rails serving as the core institutional infrastructure offering.
This post BitGo Launches Lightning Earn to Let Institutions Put Bitcoin to Work on Lightning Network first appeared on Bitcoin Magazine and was written by Micah Zimmerman.