Bitfinex to support deposits and withdrawals on Lightning Network

Bitfinex is pushing for mainstream adoption of the Lightning Network.

The cryptocurrency exchange announced in an email on Monday that it will support Lightning Network deposits and withdrawals starting Dec. 3. The company is also working to bring its stablecoin USDT and Tether Gold onto the network, Bitfinex CTO Paolo Ardoino told The Block.

Bitfinex is one of the first major exchanges to offer Lightning Network support. With the new feature, Bitfinex users can withdraw and deposit bitcoins on the exchange instantly over the Lightning Network, a second layer on the bitcoin blockchain to scale the network.

According to Ardonio, the exchange sees promises in the Lightning Network and hopes to bring the protocol to the masses.

“In Bitfinex, we think that it [the Lightning Network] can be the game-changer of our industry, since it enables P2P micro-payments with small fees and high throughput. Its P2P nature carries the unstoppable force of bitcoin. Still it requires more awareness, understanding and adoption from the larger crypto community. A major exchange supporting it will speed up this adoption process,” said Ardoino.

As part of this effort, Bitfinex is also working with a group of developers and companies called RGB to launch its stablecoin Tether and gold-backed stablecoin Tether Gold on the Lightning Network, said Ardoino.

“This is a further acknowledgment of the commitment we have for this technology,” Ardoino said.

Cryptocurrency gift card provider Bitrefill said Tuesday that it is providing Bitfinex support for the Lightning Network deposits/withdrawals. “Behind the scenes, we'll be using fat channel subnetworks, custom implementations, and dynamic settlements to power a new economy,” it said.