In a groundbreaking move for institutional cryptocurrency transactions, Secure Digital Markets (SDM) successfully completed a $1 million payment to the exchange Kraken using the Bitcoin Lightning Network on January 28. This transaction is touted as the largest publicly acknowledged Lightning transfer to date, serving as a significant proof-of-concept for seven-figure payments among regulated entities.
The impressive transfer was finalized in just 0.43 seconds, facilitated by Voltage”s managed Lightning infrastructure. This infrastructure is designed specifically to cater to the needs of exchanges and trading desks by offering node management, pre-provisioned liquidity, and guaranteed uptime.
Prior to this transaction, the largest recorded single payment in the Lightning Network was approximately 1.24 Bitcoin (BTC), translating to around $140,000 at that time. This underscores the rarity of six-figure payments, making a seven-figure transaction all the more noteworthy.
Graham Krizek, CEO of Voltage, emphasized the importance of this milestone, stating that the $1 million transfer showcases Lightning”s capability to fulfill enterprise requirements. This event arrives amid mixed metrics regarding the Lightning Network”s growth.
Although the capacity of public Lightning channels saw a decline from over 5,400 BTC in late 2023 to about 4,200 BTC by mid-2025, it has since rebounded to a new all-time high exceeding 5,600 BTC by December. Despite this growth, the overall liquidity remains modest compared to Bitcoin”s total market value, with most transactions historically skewed towards smaller amounts.
In a statement to Cointelegraph, Paolo Ardoino, CEO of Tether and chief technology officer at Bitfinex, remarked that the Lightning Network has evolved into a “powerful solution for all Bitcoin users.” Bitfinex has recently increased its Lightning deposit limits from 0.04 BTC to 0.5 BTC per payment and 2 BTC per channel, reflecting a growing trust in the network”s capabilities.
Furthermore, Fidelity Digital Assets has recognized the Lightning Network”s potential to enhance Bitcoin”s utility and investment value. Their 2025 report highlights that average Lightning capacity has surged by 384% since 2020, indicating a transformative opportunity for both emerging and established financial institutions.
Blockstream, a company focused on Bitcoin infrastructure, also shares this bullish outlook. Their recent quarterly update pointed out advancements in Core Lightning aimed at reducing latency and enhancing support for Lightning Service Providers (LSPs). Blockstream”s Greenlight platform is positioned as a solution for applications, exchanges, and services to implement trust-minimized Lightning functionality with minimal infrastructure challenges.
As the Lightning Network continues to mature, the implications for institutional Bitcoin payments are becoming increasingly clear, paving the way for more substantial transactions within the cryptocurrency ecosystem.
