Secure Digital Markets said it sent a $1 million payment to Kraken over the Lightning Network, testing whether Bitcoin’s main scaling layer can handle institutional-grade transfers.
The transaction, completed on January 28, cleared in 0.43 seconds and was routed through Voltage, which offers managed Lightning services for exchanges and trading desks.
SDM said the transfer is the largest publicly reported Lightning payment to date and a proof of concept for seven-figure settlements between regulated counterparties.
“This is an important moment for Lightning and for institutional Bitcoin payments,”
Said Voltage chief executive, Graham Krizek, who said the transaction showed Lightning’s ability to meet enterprise requirements.
The test comes as Lightning capacity has rebounded to a record above 5,600 BTC after dipping in 2024, though usage has historically skewed toward smaller retail payments.
Bitfinex chief executive Paolo Ardoino said Lightning is handling higher volumes with predictable settlement and lower costs, attributes that matter for institutional use cases.
Firms including Fidelity Digital Assets and Blockstream have argued that continued Lightning upgrades could strengthen Bitcoin’s role in institutional payments and financial markets.
At the time of reporting, Bitcoin price was $64,688.99.