Secure Digital Markets sent $1M in Bitcoin to Kraken over Lightning, showcasing near-instant, low-fee settlement for institutional-size payments.
Summary
- Secure Digital Markets completed a $1M Bitcoin transaction to Kraken via Lightning on Jan. 28, the largest publicly reported Lightning payment so far.
- The pilot, powered by Voltage’s enterprise Lightning infrastructure, aimed to test high-value settlement between regulated counterparties with near-zero fees.
- SDM, Kraken, and Voltage executives say the transfer signals Lightning’s readiness for institutional treasury, venue-to-venue settlements, and faster exchange payments.
Secure Digital Markets (SDM) completed a $1 million Bitcoin transaction via the Lightning Network on January 28 in a pilot project with cryptocurrency exchange Kraken, the companies announced.
The transaction represents the largest Lightning payment ever publicly recorded, according to the companies. The payment settled almost instantly with minimal fees.
The operation was facilitated by Voltage’s Lightning enterprise infrastructure. Voltage is a Bitcoin payments and infrastructure provider focused on institutional clients.
The pilot project was designed to test whether the Lightning Network can support high-value transfers between regulated counterparties, according to SDM. The institutional trading and lending desk said the pilot demonstrated how Lightning can support use cases such as internal treasury movements, high-value settlements, and transfers between trading venues without the delays associated with on-chain settlement.
“Moving $1 million to Kraken via Lightning Network marks a definitive shift in global settlement architecture,” said Mostafa Al-Mashita, co-founder and director of sales and trading at SDM. “We have moved beyond the era of questioning Bitcoin’s institutional capacity.”
Kraken has supported Lightning for retail payments for several years. The company said the transaction reflects growing demand from institutional clients for faster settlement options.
Bitcoin Lightning Network used in investment
“Milestones like this demonstrate what’s possible when innovation meets real-world demand,” said Calvin Leyon, head of on-chain at Kraken. “By drastically reducing settlement times, Lightning Network unlocks Bitcoin’s potential on a global scale.”
Graham Krizek, founder and CEO of Voltage, said the transaction highlights the network’s maturity and its ability to meet enterprise requirements.
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