Binance Set to Integrate Bitcoin Lightning Network for Deposits and Withdrawals

Crypto exchange Binance has started running Lightning nodes ahead of supporting Bitcoin’s Lightning Network for deposits and withdrawals.

Binance’s official Twitter account confirmed Tuesday Morning saying, “Yes – that’s us!” after some “eagle-eyed users” spotted the exchange’s Lightning Network nodes. Binance had first signaled the addition of Lightning Network support on May 8.

In a Twitter post this morning, Binance noted that “still more tech work needs to be done” before it can support Lightning Network payments. The exchange responded to Decrypt’s enquiry about its expected timeline for launch, saying, “We don’t have it yet.”

#Binance is working to integrate the #Bitcoin Lightning Network for deposits and withdrawals.

Some eagle-eyed users spotted our new lightning nodes recently. Yes – that’s us!

However, there’s still more tech work to be done. We’ll update once Lightning is fully integrated. https://t.co/N0oN8561sN

— Binance (@binance) June 20, 2023

Bitcoin developer Udi Wertheimer reported finding “Binance” nodes on the Lighning Network last week. A Lightning node enables the routing and processing of Lightning Network transactions.

What is the Bitcoin Lightning Network?

The Lightning Network is a second-layer solution developed for the Bitcoin blockchain to facilitate faster and cheaper transactions than Bitcoin’s primary network. The median fee for transactions on the lightning network is $0.00013, per Glassnode data.

So far, exchanges including Kraken, OKX, and Bitfinex and mobile payment platform, Cash App, have integrated support for the Lightning Network.

Glassnode’s data shows that the total Bitcoin bridged to the Lightning Network has increased by 65% since the start of the year; currently, the Bitcoin layer-2 network has a capacity of 5424 BTC, worth $146.4 million.