Brazilian neobank Nubank has entered into a partnership with payments platform Lightspark to offer the Bitcoin Lightning Network to its 100 million customers across Latin America. This collaboration aims to revolutionize digital payments by providing faster and more cost-effective transactions via blockchain technology.

On June 25, Lightspark announced that it is working closely with Nubank to initiate the integration of the Lightning Network. This involves extensive mapping and building of potential products that will leverage the speed and efficiency of the Lightning Network. While specific details about the new offerings are still under wraps, Lightspark promised to share more information in the near future.

As part of this collaboration, Lightspark will also introduce the Universal Money Address standard for Nubank. This innovative payment system, built on top of the Lightning Network, allows users to send and receive money using an email-like address, simplifying the process of digital transactions and enhancing user convenience.

Thomaz Fortes, Executive Director of Nubank Cripto, highlighted that this integration aligns with the neobank’s strategy to provide high-speed, low-cost transfer services through blockchain technology. Fortes emphasized that the partnership with Lightspark is a critical step in Nubank’s ongoing efforts to enhance its digital payment infrastructure and offer more efficient financial services to its vast customer base.

Lightspark, co-founded in 2022 by former PayPal president David Marcus, has been at the forefront of developing Lightning Network infrastructure for enterprises. The company described its collaboration with Nubank as a “significant milestone” for the Lightning Network, suggesting that the integration will dramatically boost network usage, especially at a time when enhanced scalability and transaction efficiency are crucial.

Nubank, backed by Warren Buffet’s Berkshire Hathaway, has been a prominent player in the digital finance space. The neobank allows trading of 14 cryptocurrencies and partnered with stablecoin issuer Circle in November to expand access to USD Coin (USDC). Nubank’s cryptocurrency services, launched in May 2022, included a strategic decision to allocate 1% of its net assets to Bitcoin, underscoring its commitment to integrating digital currencies into its financial ecosystem.

With approximately 92 million customers in Brazil and the remaining 8 million spread across Mexico and Colombia, Nubank is well-positioned to drive significant adoption of the Bitcoin Lightning Network in Latin America. According to Kaiko Research data, the majority of cryptocurrency trading volume in the region is facilitated in Brazilian real trading pairs, followed by the Mexican, Argentinian, and Colombian pesos. This regional focus further underscores the potential impact of Nubank’s new initiative on the Latin American cryptocurrency market.

By integrating the Bitcoin Lightning Network, Nubank aims to enhance transaction speed and reduce costs for its customers, thereby solidifying its position as a leading innovator in the financial technology sector. This partnership with Lightspark represents a major leap forward in making advanced blockchain technologies accessible to millions of users in Latin America.