The December 17, 2025 announcement builds on the companies’ initial April 2025 partnership that introduced self-custody Lightning solutions.

Making Lightning Accessible for Institutions

The expanded collaboration enables BitGo’s clients to execute instant Bitcoin transactions through the Lightning Network via simple API integration, now directly from qualified custody platforms. BitGo and Voltage handle all the technical complexity, including node management, channel configuration, liquidity provision, and key storage.

This removes major barriers that previously kept institutions away from Lightning adoption. Setting up and maintaining Lightning infrastructure requires specialized knowledge and constant monitoring. By offering a managed solution, BitGo eliminates these operational headaches for banks, exchanges, and financial services companies.

According to BitGo CEO Mike Belshe, the partnership combines “the speed and lower transaction costs of Lightning with the trusted security of BitGo to make bitcoin practical for everyday payments.” The system enables transactions that are up to 90% faster and 90% cheaper than traditional on-chain Bitcoin transfers.

Source: @BitGo

Voltage CEO Graham Krizek emphasized the collaboration’s importance, stating they’re “enabling organizations worldwide to send Bitcoin faster and cheaper than ever before.” The companies report that their integration supports both self-custody and full custody Lightning wallets, giving clients flexibility in how they manage their Bitcoin.

Lightning Network Hits Record Capacity

The BitGo-Voltage announcement comes as the Lightning Network reaches new performance milestones. On December 16, 2025, network capacity hit an all-time high of 5,606 BTC ($86,127.00), worth approximately $490 million. This surpasses the previous record set in March 2023.

The capacity surge reflects growing institutional confidence in Lightning’s capabilities. Major cryptocurrency exchanges including Binance, OKX, Kraken, and Bitfinex have significantly increased their Bitcoin deposits into Lightning channels in recent months. These platforms are routing more customer transactions through Lightning to reduce costs and improve speed.

Data shows the Lightning Network now processes over 8 million transactions monthly, with a payment success rate exceeding 99% in well-configured implementations. Approximately 15% of Bitcoin withdrawals on major exchanges now use Lightning rails, demonstrating real-world adoption at scale.

However, growth patterns reveal an interesting shift. While capacity has reached record highs, the number of active nodes stands at 14,940—down from a peak of 20,700 in early 2022. This indicates that existing channels are handling more Bitcoin rather than the network expanding through new participants. Analytics firm Amboss notes this growth is driven primarily by institutional players rather than grassroots adoption.

Stablecoins Coming to Lightning

Two major developments announced on December 16 signal Lightning’s evolution beyond pure Bitcoin payments. First, Lightning Labs released Taproot Assets v0.7, a protocol upgrade enabling stablecoins and other assets to be issued on Bitcoin and transferred via Lightning channels.

The upgrade introduces reusable addresses and fully auditable asset supply features. This allows stablecoins to leverage Bitcoin’s security model while achieving the instant, low-fee transfers Lightning provides. Lightning Labs stated the release lays “the foundation for trillions of dollars to flow on Bitcoin and Lightning.”

Second, stablecoin issuer Tether announced it led an $8 million funding round in Speed, a payments infrastructure company built on Lightning Network. Speed processes over $1.5 billion in annual payment volume and serves 1.2 million users through its wallet and merchant products, offering instant BTC and USDT ($1.00) settlement.

Tether CEO Paolo Ardoino said Speed demonstrates “what Lightning can achieve when paired with a stable, liquid digital dollar like USDT.” The investment reflects Tether’s strategy to expand USDT usage beyond trading into real-world payment scenarios.

Enterprise Adoption Accelerates

The Lightning Network’s practical applications are expanding rapidly. Businesses report cost savings exceeding 80% when switching from on-chain Bitcoin transactions to Lightning. Use cases now include cross-border remittances, subscription services, micropayments for digital content, and merchant payments.

Geographic distribution shows the United States leads Lightning adoption with 30.6% of all nodes, followed by Germany at 13.4%. Other significant contributors include France, Canada, and the United Kingdom, demonstrating global interest in the technology.

Coinbase, North America’s largest cryptocurrency exchange, integrated Lightning Network support in March 2025. The platform reported that more than 15% of Bitcoin withdrawals have used Lightning since integration, indicating strong customer demand for faster, cheaper transfers.

Square’s parent company Block announced plans to roll out Lightning-powered payments to its millions of merchant customers, with full deployment expected by 2026. This could bring Lightning payment acceptance to retail businesses across America.

The Road Ahead

The convergence of institutional infrastructure, stablecoin integration, and improved user experience positions Lightning Network for broader mainstream adoption. However, challenges remain. Critics note that increased reliance on custodial channels operated by large exchanges raises centralization concerns. The concentration of capacity among fewer, larger nodes deviates from Bitcoin’s decentralized ethos.

Technical development continues on issues affecting channel reliability and payment routing. Features like liquidity automation and enhanced routing algorithms aim to improve the user experience and push success rates even higher.

BitGo’s partnership with Voltage addresses a key adoption barrier by making Lightning accessible to institutions without specialized technical expertise. As custody providers, exchanges, and payment processors integrate Lightning capabilities, Bitcoin’s utility as a medium of exchange strengthens alongside its role as a store of value.

The Lightning Network’s evolution from experimental technology to institutional-grade infrastructure represents a significant milestone in Bitcoin’s development as a global payment system.

Lightning Strikes Twice

BitGo and Voltage are betting that institutions want faster Bitcoin without the hassle. With capacity at record highs and stablecoins entering the mix, Lightning is moving from crypto experiment to payment infrastructure. Whether it can maintain decentralization while scaling to meet institutional demand will define its ultimate success.