Bitcoin Treasuries Can Boost Yield by Harnessing Lightning Network Potential

Bitcoin Treasury Companies Urged to Leverage Lightning Network for Yield A growing number of industry experts are advocating for Bitcoin treasury companies to shift their focus from passive reserve management to actively participating in the Bitcoin economy through the use of the Lightning Network. According to Bobby Shell, a prominent figure at Voltage, this new paradigm offers a significant opportunity for corporations to earn native, non-custodial yield by supporting the payments infrastructure itself. In an interview, Shell emphasized that "Bitcoin treasury companies can begin to earn native, non-custodial yield by supporting the payments infrastructure itself, a complete breakthrough for corporations looking to put their BTC treasury strategy to work." By deploying idle Bitcoin into Lightning liquidity channels, these companies can earn routing fees and transaction volume rewards, thereby generating new revenue streams. The emergence of the Lightning Network has transformed the way businesses interact with Bitcoin. No longer is it simply a store of value; now it can be used as a medium of exchange. This shift in perspective has significant implications for corporate treasurers seeking to optimize their BTC holdings. According to Shell, "using Bitcoin as money, not just as a long-duration asset reserve, is the new paradigm." The Lightning Network's ability to facilitate fast and cheap transactions has made it an attractive option for businesses looking to reduce transaction costs and increase efficiency. By leveraging this technology, companies can keep their capital liquid and revenue-generating, thereby improving treasury efficiency. Industry experts point out that the adoption of the Lightning Network by Bitcoin treasury companies will not only generate new revenue streams but also contribute to the growth and development of the broader Bitcoin ecosystem. As Shell noted, "by supporting the payments infrastructure itself, we're creating a virtuous cycle where more businesses are incentivized to use Bitcoin as a medium of exchange." The current status of the Lightning Network is one of rapid growth and expansion. According to recent data, the network's capacity has increased significantly over the past year, with transaction volumes reaching new highs. As more companies begin to adopt this technology, it is likely that we will see continued growth and development in the coming months. In conclusion, Bitcoin treasury companies are being urged to lean into the Lightning Network as a means of generating native, non-custodial yield. With its ability to facilitate fast and cheap transactions, this technology offers a significant opportunity for corporations to optimize their BTC holdings and contribute to the growth of the broader Bitcoin ecosystem. As Shell emphasized, "now is the moment to shift from passive reserve to active participant in the Bitcoin economy." *Reporting by Coindesk.*