Lightning Labs Raises $10M And Launches ‘Loop’ Beta For Faster LN to BTC Payments
Lightning Labs has managed to raise $10 million in a Series A funding that is meant to help the company launch the first merchants’ service for Bitcoin (BTC) payments.
The round was led by Craft Ventures. Managing Director Brian Murray joined the board of directors at Lightning Labs, while other investors were David Heller, the former head of securities at Goldman Sachs, Slow Ventures, Ribbit Capital and Avichal Garg of Electric Capital. This is what Murray said about the service Lightning Network is providing for BTC:
“If Bitcoin is going to reach its potential of being a global currency then it’s going to need to go much faster and cheaper than the base layer. Visa is the payment network that facilitates a lot of the ways currency moves around the world, this is like the service the Lightning Network provides for Bitcoin.”
Lightning Labs LND Raised $2.5 Million in a Seed Round
Back in 2018, Lightning Labs launched the beta version of LND, its scaling solution. It has raised $2.5 million in a seed round. In June 2019, it launched a mobile wallet app.
Starting today, it’s offering the Lightning Loop paid service. Loop is meant to help with the management of merchants’ payment channels, as Lightning channels need to have BTC in them if they are to remain open. Only a balanced in-and-out flow allows them to remain open, so those who are using them have a serious problem. Lightning Labs’ CEO, Elizabeth Stark, had this to say about Loop:
“Loop ‘in’ helps people put funds into their existing channels… kind of like a prepaid debit card for a lightning account. Loop ‘out’ is currently the most popular product because it allows people to continue receiving funds on lightning.”
Loop Hels with Maintaining Liquidity in the Channels
The Loop service will charge only a small percentage from each loop, helping exchanges and merchants keep liquidity in the channels. Stark thinks Lightning Labs is different from other startups offering the same services because it’s turning into an “infrastructure provider”.
Lightning Labs is scaling!
Announcing our $10M Series A to fuel LN development, and the Lightning Loop beta release, a product making it easier send/receive #bitcoin instantly.
With 4000 developers and 30+ startups, the next decade of Lightning is on 🔥https://t.co/3P4gVm89OV
— Lightning Labs⚡️ (@lightning) February 5, 2020