Square Earns 9.7% Yield on Bitcoin Holdings via Lightning Network
Square, owned by Block (XYZ), is generating a 9.7% yield on its bitcoin holdings by operating a node on the Lightning network. This was announced by Miles Suter, Block's Bitcoin product lead, at Bitcoin 2025 in Las Vegas.
- The yield translates to approximately $1 million annually.
- Square’s Lightning service provider c= was established two years ago to enhance liquidity and efficiency.
- Currently, one in four outbound bitcoin payments from Square are processed via Lightning.
- Full rollout of Lightning-based payments to Square sellers is planned for 2026.
Despite some challenges facing the Lightning network, such as inbound liquidity requirements, Square views it as essential for accelerating bitcoin payment adoption.