A transfer worth $1 million over the Lightning Network was executed between Secure Digital Markets (SDM) and Kraken, showcasing the capability of Bitcoin’s scaling layer for high-value institutional transactions.
In a statement announced Thursday, SDM claims this payment stands as the largest known Lightning transaction to this point, setting a precedent for transactions of this magnitude between regulated entities.
The payment took just 0.43 seconds to clear and utilized Voltage’s managed Lightning infrastructure, designed to provide liquidity and reliability for exchanges and trading platforms.
Previously, the largest published Lightning payment was about 1.24 Bitcoin (approximately $140,000 at that time), illustrating the uncommon nature of significant Lightning transfers, especially those in the seven-figure range.
“This transaction is a significant milestone for Lightning and institutional Bitcoin payments,” stated Voltage CEO Graham Krizek, pointing out that it emphasizes Lightning’s capacity to meet enterprise demands.
Lightning Network Growth
This transaction occurs amidst varied metrics for the Lightning Network. The total capacity in public Lightning channels saw a decline from over 5,400 BTC in late 2023 to around 4,200 BTC by mid-2025, but has since surged to a new record of over 5,600 BTC by December.
However, Lightning’s capacity remains limited in comparison to Bitcoin’s overall market value, with most transactions typically skewing towards smaller amounts.
According to Paolo Ardoino from Tether and Bitfinex, the Lightning Network is a “robust solution for all Bitcoin users,” which started as an endeavor for retail payments. He noted improvements in transaction volumes, efficiency, and cost effectiveness—elements crucial for institutional applications.
Institutional Interest in Lightning
Fidelity Digital Assets highlighted the potential of the Lightning Network in their recent report, asserting that it not only enhances Bitcoin’s functionality but also strengthens its investment case.
In addition, Blockstream has emphasized expanded enterprise capacity through its infrastructure releases aimed at optimizing transactions via the Lightning Network.
This could lead to transformative advancements for both new and established financial institutions.
