TL;DR
- The new feature allows users to send cash balances directly to Bitcoin wallets using the Layer 2 network.
- This integration makes it easier for merchants to receive BTC while customers pay with their regular fiat balances.
- The Lightning Network continues its expansion with over $500 million in value locked by November 2025
Cash App, the financial services application, is advancing toward the convergence of traditional finance and the crypto world. The app now allows for dollar payments via Lightning Network.
This feature allows users to send funds to Bitcoin wallets from their cash accounts, eliminating the barrier of having to own the cryptocurrency beforehand.
This feature, which initially had a soft launch on social media following a teaser on the company’s official X account, represents a new use case for Bitcoin’s scaling technology.
Although Cash App had already integrated Lightning addresses in 2022, this update seeks to preserve investors’ BTC holdings, allowing them to use their cash balances for fast transactions on crypto rails.
Expansion of Bitcoin Utility and Fintech Adoption
The goal of the application is to resolve the existing friction when sending payments to BTC wallet holders without going through an exchange first. With the inclusion of dollar payments via Lightning Network, merchants can receive Bitcoin instantly, while the customer uses their regular dollar balance. The option will be available mostly in the United States, although the application has operational approval in the United Kingdom.
The App’s optimization arrives just weeks after Square expanded its BTC payment options, reaffirming Jack Dorsey’s support for Bitcoin infrastructure.
Lightning technology, operational since 2018, has experienced robust growth, managing over $500 million in value by November 2025, despite criticisms regarding its relative centralization in top liquidity channels.
Historically, Bitcoin has lagged as a payment asset compared to stablecoins due to its volatility, which incentivizes “HODLing” or value storage. However, Cash App’s initiative demonstrates how proven crypto technology can be effectively integrated into mass fintech applications, bridging the gap between fiat money and the decentralized digital economy.
