Square, the payment platform owned by Jack Dorsey’s Company Block (XYZ), earns a dividend of 9.7% on its Bitcoin holdings by running a knot on Lightning Network.
Block’s Bitcoin product Lead Miles Same said the company earns “Real Bitcoin returns from our business inventory … by effectively directing real payments across Lightning Network”, in a performance in Bitcoin 2025 in Las Vegas on Wednesday.
The yield is earned through Square’s Lightning Service Provider C =, which was created two years ago to improve liquidity and efficiency on lightning.
Lightning Labs’ Ryan Gentry referred to SUTER’s message as “the biggest news” on Bitcoin 2025 in a post of X, estimating that Square’s 9.7% yield equals about $ 1 million a year.
For many years, Bitcoin Layer-2 Network Lightning was hailed as the savior of BTC’s scale problems and speed by creating micropayment channels that can process transactions away from head blocks.
Although some of these hopes have disappeared due to Lightning’s errors, such as the requirement of in -depth liquidity, where users actually have to commit BTC to receive BTC. This can deter the adoption of smaller scales, which is an obstacle to decentralization.
However, Square sees Layer-2 as fundamental to its plans to speed up BTC payments adoption, with one in four of its outgoing Bitcoin payments now processed on lightning, Same said on stage in Las Vegas.
The company pilotes lightning -based payments in Bitcoin 2025 with plans for a roll -out to all eligible square sellers by 2026.
“When you activate real payments by making. Faster and more practical, the network becomes stronger, smarter and more useful,” Same said.
“So if you wonder if you wonder if Bitcoin is still just an asset, the answer is no. It’s already an asset and a protocol, and now the block leads the effort to make it the world’s best payment system.”
