Bitcoin-backed borrowing isn’t just popular with individual retail investors — businesses are also using BTC as part of their treasury strategy.
“We put a decent chunk of our treasury into Bitcoin,” said Graham Krizek, the founder of Voltage, a Lightning infrastructure provider. “It extended our runway and saved us from taking out traditional loans. That’s real operational leverage.”
Voltage also uses Lightning Network liquidity to reduce internal costs and improve capital efficiency. “Without Lightning liquidity, we would have been forced to raise money. Lightning keeps the business running smoothly,” Krizek added.
Some public companies are taking this even further. Block (formerly Square) earns Bitcoin-denominated returns by running Lightning nodes.
In 2024, Block generated about 9% annual yield on their BTC holdings from Lightning fees alone. These examples hint at a future where Bitcoin isn’t just a passive store of value — it becomes a working asset that directly strengthens cash flow.
The Evolution of Risk Management in Bitcoin Lending
As institutional interest increases, Bitcoin lending infrastructure is becoming more sophisticated. Platforms such as Strike, Ledn, Nexo, and Unchained now provide transparent loan structures, clearer disclosures, and closer alignment with Bitcoin’s native ecosystem.
The regulatory environment is also slowly improving as stablecoin rules and crypto asset definitions progress in the U.S. Congress.
For lenders, Bitcoin is an ideal collateral type because it can be liquidated instantly, 24/7. In contrast, real estate collateral can take months or years to sell.
Bitcoin’s main drawback is its volatility, but lenders manage this through risk modeling, strict LTV ratios, and automated liquidation systems.
Overall, the shift toward collateral-based lending marks Bitcoin’s growing role within mainstream financial services.
“Borrowing is definitely the riskier choice,” said Alex Leishman, CEO of River Financial. “But for long-term Bitcoin believers who want liquidity without selling, it’s becoming a practical option — especially as lending infrastructure becomes more advanced.”
How the Lightning Network Makes Bitcoin and Stablecoins Spendable
While Bitcoin-backed lending gives users more liquidity, much of that liquidity flows into the Lightning Network — the fast, low-cost payment layer built on top of Bitcoin.
The Lightning Network lets people open private payment channels and settle transactions off-chain. These payments take milliseconds instead of minutes, and fees are extremely small.
A transaction for something simple — like a cup of coffee — can settle instantly on Lightning, unlike Bitcoin’s base layer, which takes 10 minutes, or credit card networks that can take up to two days.
Lightning adoption has also expanded beyond Bitcoin. Stablecoins, especially USDT, are increasingly being used on Lightning rails. At the 2025 Bitcoin conference, Tether CEO Paolo Ardoino said Lightning was the “perfect” scaling solution because it uses peer-to-peer channels instead of a centralized validator model.
Stablecoins matter because most people don’t want to spend their Bitcoin. In El Salvador, even though Bitcoin is legal tender, most everyday transactions happen in stablecoins. “People prefer to think in dollars,” noted Liquidium’s Obermaier after spending several months in the country.
Enterprise Adoption of the Lightning Network
Lightning is quickly becoming a core payment infrastructure for businesses. Companies like Voltage provide Lightning-as-a-Service tools for wallets, exchanges, and fintech apps. River Financial offers Lightning APIs for institutional clients. More banks and fintech companies are integrating Lightning for instant, low-cost payments.
Lightning capacity reached $450 million by mid-2025, a 50% increase year-over-year. Major platforms like Coinbase, Kraken, Strike, and Revolut Bank now support Lightning payments. Decentralized social apps such as Nostr also rely heavily on it.
Venture capital interest is rising too. In 2024, VC deals involving Bitcoin and Lightning climbed 32% to 194 deals, an all-time high. Startups building tools on Lightning — from payment processors to micropayment services — are attracting new funding.
Lightning has challenges, however. Liquidity must be actively managed, channels must remain funded, and large payments can be tricky to route. There is also a steep technical learning curve. Yet developers argue that this complexity is what makes Lightning uniquely powerful.
“Lightning is fundamentally different from every other blockchain,” said Krizek. “It’s complicated, but it’s also what makes it work so well. With Voltage, we simplify it through APIs, but there’s always a learning curve.”
Regulatory Clarity Is Unlocking Large-Scale Crypto Adoption
Regulatory uncertainty has long discouraged institutions from entering crypto. But recent U.S. legislation is changing the landscape. Two major laws advanced in July 2025:
- The GENIUS Act, which defines payment stablecoins under federal law.
- The CLARITY Act, passed by the House, which identifies crypto assets as securities or commodities.
These moves, combined with the crypto-friendly stance of the Trump administration, have boosted confidence across the industry.
“After the election, adoption surged,” said Leishman. “The regulatory climate flipped from confusion to clarity. People finally feel safe to build.”
What’s Next: The Lightning Network and Bitcoin Layer-2 Innovation
Lightning’s biggest breakthrough may soon be its “merchant moment” — when businesses widely adopt it for everyday payments. Services like Strike, Voltage, and River are making this easier with plug-and-play solutions. Merchants benefit from zero chargebacks, near-instant settlement, and dramatically lower fees.
Supporters believe Lightning will soon function quietly in the background, powering everything from retail payments to automated business operations. Meanwhile, other Layer-2 solutions such as Botanix and Citrea are gaining momentum by adding smart-contract capability to Bitcoin through rollups. Privacy-focused eCash systems like Fedimint and Cashu are also taking off, offering offline-friendly, low-fee digital cash.
Together, these innovations form a growing financial layer built directly on Bitcoin.
AI Agents and the Future of Machine Payments
Lightning is also emerging as the payment layer for AI. As AI agents increasingly communicate with other digital systems, they will need a fast, programmable payment method. Lightning fits perfectly because it enables small payments, instant settlement, and automation without traditional banking rails.
“Imagine AI agents connected to dozens of APIs, automatically paying bills, reconciling balances, or managing spending,” said Calicott of TVP. “Lightning becomes the final step — the payment layer.”
This shift reflects the internet’s original vision. Early web architecture included a little-known HTTP code called L402 — ‘Payment Required’, designed for digital transactions. Lightning could finally make that vision real, enabling AI-to-AI payments natively on the internet.
If this trend continues, Bitcoin may evolve from digital gold into the native currency of the internet, powering both human and machine payments.
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