BitGo, an OCC-regulated digital asset trust bank, has introduced Lightning Earn, a new product that allows corporate Bitcoin treasuries and institutional investors to deploy Bitcoin as liquidity on the Lightning Network and earn Bitcoin-denominated routing fees.
This service is built on integration with Amboss Technologies’ Rails product. It is a Lightning infrastructure platform that allows participants to route payments across the network and earn routing fees by leasing liquidity. BitGo, a subsidiary of BitGo Holdings, Inc. (NYSE: BTGO), said the integration will give institutional investors access to Lightning Network infrastructure without sacrificing custody or governance standards.
Through BitGo’s integration with Amboss, clients deploy Bitcoin to Lightning Network channels. These funds route payments through the network and provide liquidity to new payees.
In return, participants receive fees denominated in Bitcoin, rather than tokens, synthetic products, or third-party yield products.
BitGo said existing security controls, operational workflows, and governance infrastructure will be carried over to the Lightning Earn product, providing institutions with the compliance framework they need to participate.
BitGo commits its own finances
The bank is putting some of its Bitcoin vaults on Amboss Rails, a move the company describes as a direct sign of confidence in the product.
“We believe Rails provides a reliable way for our clients to adopt Bitcoin without sacrificing custody or governance,” said Mike Belshe, CEO and co-founder of BitGo. “We are allocating a portion of our own finances to Rails and are excited to bring this capability to the institutions we serve.”
The decision to put money into the company shows that it views Lightning Earn as more than a product for its customers. It also positions the company alongside clients that are exposed to the routing economics of the Lightning Network.
Amboss CEO Jesse Shrader said the partnership marks a turning point in institutional investor participation in the Lightning Network.
“BitGo’s integration of Rails sends a clear signal that Lightning is suitable for educational institutions,” Schrader said. “The capital brought in by BitGo and its customers allows Bitcoin to deliver instant payments at enterprise scale while benefiting from the adoption of Lightning.”
Amboss builds data, software, and infrastructure products for the Lightning Network, with Rails serving as the primary organizational infrastructure product.
This article, BitGo launches Lightning Earn, lets institutions spend Bitcoin on the Lightning Network, was originally published in Bitcoin Magazine and was written by Micah Zimmerman.
