Nubank and Lightspark team up to integrate Bitcoin Lightning Network
On June 25, Brazilian digital bank Nubank announced a partnership with Lightspark to integrate the Bitcoin Lightning Network to its 100 million users in Latin America. Thomaz Fortes, Nubank’s cryptocurrency director, said the partnership is in line with the company’s strategy of using blockchain technology to improve financial services, especially in terms of transaction speeds and lower user costs.
According to the announcement, Lightspark will serve as the provider of enterprise Lightning Network infrastructure and be responsible for integrating the Bitcoin Lightning Network. David Marcus, co-founder of Lightspark and former PayPal president, believes that this cooperation is an important step in promoting the popularity and use of the Lightning Network.
Additionally, Nubank will introduce a feature called Universal Money Address (UMA), an email-like address used for fund transfers designed to make it easier to send and receive payments. Nubank already offers trading services in 14 cryptocurrencies and has allocated 1% of its net assets to Bitcoin, building on its earlier partnership with Circle to expand the use of USD Coin and boost crypto trading capabilities.
Image source: David Marcus, co-founder of X Lightspark, is happy to announce the cooperation between Nubank and Lightspark
Nubank's main customer base is in Brazil, but it is also expanding capabilities into Mexico and Colombia. Nubank’s adoption of the Lightning Network could have a significant impact on cryptocurrency usage in Latin America. The region already excels in cryptocurrency trading volumes in local currencies, and this integration could further accelerate the adoption of digital finance across the continent.
Santander enters Brazilian cryptocurrency market
International banking giant Santander also announced that it will provide cryptocurrency trading services in Brazil. The bank will roll out the feature to some clients of its investment unit Toro this week, with plans to gradually expand the feature to more users. The move sees Santander join the ranks of Nubank and Itau Unibanco, which already offer cryptocurrency trading services in Brazil.
Santander decided to enter the cryptocurrency market after three years of internal research and market analysis. Toro will initially offer Bitcoin and Ethereum trading services to selected customers with appropriate risk tolerance. Joao Resende, co-founder and CEO of Toro, said that they will research services to expand the functionality of cryptocurrencies and tokenized assets, and plan to expand these services to more than 1 million platform customers.
Source: CoinDesk Santander Bank
Resende stressed that this is their first step. While Santander announced back in 2022 that it would offer cryptocurrency trading services, the plan was delayed due to the different vetting and screening processes required for partners to conduct custody and other supporting infrastructure. "We want to make sure we're delivering a product that has all the necessary safety features and has an educational focus," he said.
Latin America’s Cryptocurrency Outlook
With major banks such as Nubank and Santander offering cryptocurrency services in Brazil, these initiatives show Latin America’s huge potential in the digital finance industry. The actions of these banks will not only help increase the acceptance and usage of cryptocurrencies among local users, but may also drive fintech innovation throughout the region.
For Nubank and Santander, these strategic moves are not only part of expanding the capabilities of their financial services, but also reflect their confidence in the Latin American market. By introducing advanced payment technology and cryptocurrency transaction services, these banks are working to push Latin America’s financial system to new heights of digitalization and globalization.
As more banks and financial institutions join the cryptocurrency market, Latin America’s 100 million people are expected to use lightning payments, which not only improves transaction efficiency but also reduces costs and brings more opportunities to the local economy. These developments symbolize Latin America’s important position in the global cryptocurrency and digital financial industry, and future developments are worth looking forward to.
