Binance, the world’s leading cryptocurrency exchange has announced that it has officially integrated the Bitcoin Lightning Network, a second-layer scaling solution that enables fast and cheap transactions on the Bitcoin network. This is a major milestone for both Binance and the Bitcoin community, as it will improve the user experience and reduce the network congestion and fees for Bitcoin transactions.
The Lightning Network is a decentralized network of payment channels that allows users to send and receive Bitcoin instantly and with minimal fees. The network operates on top of the Bitcoin blockchain but does not require every transaction to be recorded on the main chain. Instead, users can open channels with each other and transact off-chain, only settling the final balance on the blockchain when the channel is closed. This way, the Lightning Network can handle millions of transactions per second, while maintaining the security and decentralization of Bitcoin.
Binance users can now deposit and withdraw Bitcoin using the Lightning Network, by selecting the “Lightning” option in the deposit or withdrawal page. Users will need to have a Lightning wallet that supports the Lightning Network address format (bech32), such as Breez, BlueWallet, Eclair, Phoenix, or Zap. Users can also scan a QR code or copy and paste the Lightning invoice to complete the transaction. Binance supports both public and private channels and does not charge any additional fees for using the Lightning Network.
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By integrating the Lightning Network, Binance aims to provide its users with more options and flexibility for their Bitcoin transactions. Binance CEO Changpeng Zhao (CZ) said: “We are always looking for innovative ways to improve our platform and services for our users. The Lightning Network is a game-changer for Bitcoin and its community, and we are thrilled to be a part of it. We hope that by supporting the Lightning Network, we can help boost the adoption and development of this breakthrough technology.”
Binance is not the only cryptocurrency exchange that supports the Lightning Network. Other exchanges such as Bitfinex, OKEx, Kraken, and Bitstamp have also integrated or announced plans to integrate the Lightning Network in the future. The Lightning Network is also supported by various merchants, wallets, applications, and services that allow users to pay with Bitcoin in a fast and convenient way. The Lightning Network is expected to grow further as more users and businesses adopt this innovative technology.
BLOCKFI Allegedly lent $217 million to Alameda Research
In a recent report by The Block, it was revealed that BlockFi, a leading crypto lending platform, had allegedly lent $217 million worth of USDC stablecoins to Alameda Research, a prominent crypto trading firm and the parent company of FTX exchange. The report claimed that the loan was made at a 4% annual interest rate and was collateralized by $300 million worth of unspecified cryptocurrencies.
The report raised some concerns among the crypto community, as some questioned the transparency and risk management of BlockFi’s lending operations. Some also speculated that the loan could be used by Alameda Research to manipulate the crypto market or to arbitrage across different platforms.
BlockFi has not confirmed or denied the report, but issued a statement saying that it “does not comment on specific client relationships or transactions”. The statement also said that BlockFi “adheres to rigorous underwriting standards and robust risk management practices” and that it “works with a diverse set of institutional counterparties across the crypto ecosystem”.
Alameda Research has also not commented on the report, but its founder and CEO, Sam Bankman-Fried, tweeted that he “can’t confirm or deny anything about any specific loans” and that he “doesn’t think there’s anything wrong with lending or borrowing”. He also said that he “doesn’t see any reason why this would affect anything” and that he “doesn’t think it’s a big deal”.
The report comes at a time when BlockFi is facing regulatory scrutiny from several states in the US, which have accused the company of offering unregistered securities through its interest-bearing accounts. BlockFi has denied the allegations and said that it is working with regulators to resolve the issues.
BlockFi is one of the most popular and successful crypto lending platforms in the industry, with over $15 billion in assets under management and more than 450,000 clients. The company offers various products and services, such as interest-bearing accounts, crypto-backed loans, trading, and institutional services.
Alameda Research is one of the most influential and respected crypto trading firms in the industry, with over $100 billion in trading volume per month and more than $1 billion in assets under management. The firm is also behind FTX, one of the largest and fastest-growing crypto exchanges in the world, which recently raised $900 million in a Series B funding round at an $18 billion valuation.