Lightning Offers Growth Path for Emerging-Market Crypto Exchanges

While leading cryptocurrency exchanges like Coinbase and Binance feverishly add new tokens, smaller exchanges serving emerging markets are pivoting toward retail applications of the lightning network's bitcoin scaling solution.

The latest is Singapore-based exchange Zebpay, which now offers lightning wallet options for users who want to send lightning-enabled payments to external wallets.

In contrast to the above-mentioned platforms, Khurana said Zebpay has a smaller monthly user base of a "Few hundred thousand" - which could still make the company's new lightning wallet one of the more widely used options on the market.

Lightning now is part of the exchange's strategic plan for expanding beyond simple exchange services.

Although Zebpay may lead the way for Indian bitcoin users who are learning about lightning, it isn't the first exchange to prove lightning integration can prove commercially viable.

Buda software engineer Alejandro Echeverría told CoinDesk 100 customers have used this lightning feature so far and, from integration to channel management, the additional cost to the exchange has been less than $5,000.

Much like Zebpay's Indian users, Buda's users in Colombia often find that banks won't allow them to purchase bitcoin or interact with crypto companies.

Lightning wallets make these transactions much cheaper than regular bitcoin transactions, helping users overcome liquidity issues.

Feuerhake went on to say his exchange will add both mobile lightning options and the ability to receive payments within the next few months, followed by an experimental roll-out of merchant payment processing services later this year for small businesses such as hairdressers.

"Who among the exchanges will remain competitive?" Khurana asked.