Lightspark Announces UMA Extend, Offers Lightning Network Payments Settled to Legacy Accounts
- PHPzOriginal
- 2024-08-31 15:36:131076browse
Cryptocurrency companies are rushing to link the decentralized finance world with the legacy banking finance ecosystem.
Financial services firm Lightspark has announced the launch of UMA Extend, a feature that aims to enhance the interaction between crypto and legacy rails in the U.S. With UMA Extend, businesses can opt into a directory that is linked to an account, enabling them to instantly receive LN payments that are settled in dollars.
Lightspark Launches UMA Extend for Lightning Network Payments Settled to Legacy Accounts
Several cryptocurrency companies are focusing on bridging the gap between decentralized finance (defi) and the legacy banking finance ecosystem. Among these is Lightspark, a financial services firm that offers Lightning Network (LN)-based products. The company has now announced the launch of UMA Extend, a solution that allows for the settlement of LN payments to bank accounts in the U.S.
Extend leverages Unified Money Addresses (UMA), a protocol that was open-sourced by the firm in October and enables each user to have an email-like address for sending and receiving money. Extend integrates this protocol with “eligible recipients.” While Lightspark did not specify which recipients were eligible, the company did state that it is “compatible with over 99% of U.S. banks that accept real-time payments.”
David Marcus, the founder and CEO of Lightspark, showcased the solution on his X account, demonstrating how each payment is sent and settled in near-real time. This capability could increase the adoption of the always-connected, low-fee LN network by a broader financial audience.
According to Lightspark, the UMA protocol has been adopted in 120 countries and is supported by several companies, including Coins.ph in the Philippines, Ripio in Latam, and others.
The launch of UMA Extend builds on Marcus’ vision for the future of LN. In May, Marcus shared his belief that LN will become the settlement network for world currencies. “Any corporation that needs to move money will end up using, directly or indirectly, LN and bitcoin,” he stated at the time.
Several cryptocurrency exchanges, such as Coinbase, Bitso, and Nubank, utilize Lightspark’s services to offer LN support for deposits and withdrawals.
What are your thoughts on Lightspark UMA Extend? Let us know in the comments section below.
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