Strike’s El Salvador merchant onboarding and Nubank’s BTC integration

Nubank’s Lightning expansion

Nubank’s integration of the Bitcoin Lightning Network through Lightspark provides a path for its 70 million users. This partnership allows customers in Brazil, Mexico, and Colombia to access near real-time, low-cost Bitcoin and fiat transactions. Lightspark provides the SDKs, APIs, and AI tools to handle liquidity and routing. Nubank uses Paxos for custody and brokerage services. The company previously offered Bitcoin and Ethereum trading to its customers through the Nubank app, with transactions starting at BRL $1.00. Nu Holdings, the parent company, also allocated roughly 1% of its balance sheet cash to Bitcoin. I view the partnership as a way to bring blockchain technology to a massive user base. However, the integration of such technology into a platform with 70 million users introduces technical complexities. Nubank currently serves over 50 million customers in Brazil alone. The company has already registered around 2 million users who bought cryptocurrency through the Nubank app. The platform also includes Polygon and Uniswap. Lightspark’s software enables demanding institutions to tap into the Lightning Network and reach the highest transaction success rates. Nubank aims to broaden and improve access to this market.

Strike’s El Salvador onboarding

Strike’s onboarding of 500,000 merchants in El Salvador utilizes the Lightning Network to facilitate payments. Jack Mallers, the CEO of Strike, abandoned the use of USDT because new regulations allow partnerships with banks that are interoperable on Lightning. Before the country’s president passed the bill to make Bitcoin legal tender, Strike had to use USDT to provide basic functionality because financial services could not legally custody dollars for users. I find the removal of Tether from the process a logical step for users who distrust the project’s transparency. Strike also integrates with over 1,000 cash point distributors to allow unbanked people to convert physical dollars into app balances. This move follows the company’s decision to move its global headquarters to El Salvador. The company plans to release a new debit card to its users later this year. Does this expansion lead to full financial inclusion for the rural population? Strike’s expansion into global markets followed the passing of a digital assets law that established a regulatory framework for crypto in El Salvador. Jack Mallers introduced President Bukele at the Bitcoin Miami conference in 2021. Strike also allows users to transfer between USD and other currencies in twelve countries across Africa, Central America, and Southeast Asia.

The Salvadoran market reality

The Salvadoran economy operates with Bitcoin as legal tender and the US dollar. The state reserve holds approximately 7,785 bitcoin, which totals about $660 million at the current price of $85,000 per coin. The Bitcoin Office tracks the reserve, which has grown by one coin per day. Merchants accept Bitcoin through QR codes, which facilitates fast, contactless transactions. You should remember that Bitcoin remains a private choice for most consumers in the country.

Smartphone penetration in the country is over 70%. Nearly 60% of the population is under 30. In 2023, El Salvador’s online commerce volume surpassed $500 million, with a growth rate of approximately 18%. Digital payments account for over 40% of total retail transactions, while mobile commerce represents nearly 35% of e-commerce sales. The government also launched the Chivo Wallet to help with Bitcoin and dollar conversions. The Chivo Wallet connects with the banking system of El Salvador to deposit or withdraw dollars and works with a network of Chivo ATMs. Because Bitcoin is legal tender, merchants must accept it, yet the country’s dual-currency system creates distinct challenges for those targeting both tech-savvy users and traditional consumers. Most orders average between $40 and $60. The Legislative Assembly amended the Bitcoin Law on January 29, 2025, which made the acceptance of Bitcoin voluntary for all businesses. The IMF approved a 40-month Extended Fund Facility on February 26, 2025, worth about $1.4 billion.