Large Regulated Payments via Lightning Network Tested
The Lightning Network was tested for fast payments between regulated entities involving a six-figure amount. As part of the test, Secure Digital Markets transferred $1 million to crypto exchange Kraken in under half a second.
Secure Digital Markets (SDM), a North American regulated broker and liquidity provider specializing in over-the-counter (OTC) trading of digital assets for institutional investors, sent 11.3 BTC (~$1 million) via the Lightning Network to a Kraken exchange address.
The payment was processed in 0.43 seconds and routed through Voltage’s managed Lightning infrastructure, which is designed for exchanges and professional trading platforms. The infrastructure includes node management, pre-allocated liquidity, and guarantees of stable operation.
Graham Krizek, CEO of Voltage, noted that the successful six-figure payment demonstrates the Lightning Network’s ability to meet the requirements of corporate and institutional clients, including settlement speed and execution predictability.
At present, the transaction is the largest publicly recorded payment on the Lightning Network. The previous publicly known record for a single Lightning payment was about 1.24 BTC (~$140,000).
The institutional potential of the Lightning Network was recently highlighted by analysts at Fidelity Digital Assets. According to their data, the network’s average capacity has increased by 384% since 2020. The Lightning Network is actively used by FinTech companies to simplify cross-border money transfers, integrate, and accelerate Bitcoin payments. For more details on what the Lightning Network is and how the protocol turns Bitcoin into a payment medium, see CP Media’s special feature.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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