SDM Executes First Ever $1 Million Lightning Network Payment to Kraken in Institutional Pilot

Bitcoin Magazine
SDM Executes First Ever $1 Million Lightning Network Payment to Kraken in Institutional Pilot

Secure Digital Markets (SDM) has completed a $1 million Bitcoin transaction over the Lightning Network in a pilot settlement with cryptocurrency exchange Kraken, marking what the firms say is the largest publicly reported Lightning payment to date.

The transaction, executed on Jan. 28 and valued at $1 million at the time, settled nearly instantly and with minimal fees.

It was facilitated using enterprise Lightning infrastructure from Voltage, a Bitcoin payments and infrastructure provider focused on institutional clients.

Lightning is a second-layer network built on Bitcoin that enables faster and cheaper payments by moving transactions off the base blockchain. 

While it has been widely used for small consumer payments, its suitability for large institutional settlements has remained an open question. The SDM-to-Kraken pilot was designed to test whether the network can support high-value transfers between regulated counterparties.

“Moving $1 million to Kraken over the Lightning Network marks a definitive shift in the architecture of global settlement,” said Mostafa Al-Mashita, co-founder and director of sales and trading at SDM in a note to Bitcoin Magazine. “We have moved past the era of questioning Bitcoin’s institutional capacity.”

Lightning transactions without delays

Traditional Bitcoin transactions can take minutes or longer to confirm and are subject to fluctuating fees, factors that complicate treasury operations and inter-institution settlements. 

SDM said the pilot demonstrated that Lightning could support use cases such as internal treasury movements, large-value settlements, and transfers between trading venues without the delays associated with on-chain settlement.

Kraken, one of the longest-operating crypto exchanges, has supported Lightning for retail payments for several years. The firm said the transaction reflects growing demand from institutional clients for faster settlement options.

“Milestones like this demonstrate what’s possible when innovation meets real-world demand,” said Calvin Leyon, head of on-chain at Kraken. “By dramatically reducing settlement times, the Lightning Network unlocks Bitcoin’s potential at global scale.”

The transaction relied on Voltage’s managed Lightning infrastructure, which provides liquidity management, node uptime, and operational guarantees designed to meet institutional requirements. Voltage said the pilot highlights how Lightning has matured beyond experimental use cases.

“A $1 million Lightning transfer highlights the maturity of the network and its ability to meet enterprise requirements,” said Graham Krizek, founder and CEO of Voltage.

SDM operates an institutional trading and lending desk offering execution through graphical interfaces, APIs, and request-for-quote systems. 

The firm said integrating Lightning infrastructure allows it to explore faster settlement options for clients without relying solely on traditional payment rails.

This post SDM Executes First Ever $1 Million Lightning Network Payment to Kraken in Institutional Pilot first appeared on Bitcoin Magazine and is written by Micah Zimmerman.