Cash App is launching a new feature that will allow users to make Lightning Network payments using their cash balances without needing to pre-own Bitcoin (BTC).
Seamless Cash-to-Crypto Payments
- New Use Case: Cash App will now handle payments on BTC rails. Users can initiate a payment in U.S. dollars from their cash or direct balances, and the app will instantly convert and transfer the value as BTC to the receiver's external BTC wallet via the Lightning Network.
- Preserving BTC Holdings: This innovation allows users to leverage the speed and low cost of the Lightning Network for transactions while preserving their existing BTC holdings (encouraging them to spend fiat instead of their crypto assets).
- Wider Access: The feature solves the problem of sending payments to external BTC wallets without requiring users to go through a separate crypto exchange first.
- Availability: The payment option will be mostly available in the USA but is also approved in the UK.
Lightning Network Momentum
- Growing Support: The feature underscores the ongoing support for the Lightning Network by figures like Jack Dorsey (Cash App’s former CEO) as a key BTC scaling solution.
- Increased Capacity: The Lightning Network has continued to increase its capacity, which currently holds over $500 million in value.
- Centralization Concerns: The network's main weakness remains its relative centralization, as it relies heavily on top channels for liquidity.
- Adoption Milestone: Cash App's integration demonstrates how time-tested crypto technology is successfully finding its way into mainstream fintech applications.
Despite BTC lagging as a primary payment asset due to its high value encouraging holders to save rather than spend, Cash App's move is a significant step toward making peer-to-peer BTC transfers faster and more seamless for everyday use.
November 2025, Cryptoniteuae