Jack Dorsey’s Cash App offers dollar payments through Lightning Network

Cash App will offer access to Lightning Network payments from cash balances to BTC wallets, without the need to own the digital coin in advance. The feature allows users to send dollars, which will then be transferred as BTC to the receiver’s wallet. 

Cash App will start handling cash payments on BTC rails, offering a new use case of the Lightning Network. The app’s X handle also teased the new feature before it was leaked. 

The payment feature had a soft launch through social media, where users noticed the option to send funds without pre-owning BTC. 

oops https://t.co/HbiDq0GQt1

— jack (@jack) November 12, 2025

Cash App added Lightning addresses for its users in 2022, also allowing BTC payments. The new payment rails, however, aim to preserve BTC holdings, while still using the Lightning Network to transfer value. 

The app will also solve the problem of sending payments to holders of BTC wallets, without the need to go through an exchange first. Users can choose to fund their BTC payment with either their available direct balance or a cash balance. 

The app will allow merchants to receive BTC from the available balances on the Lightning Network, while customers will be able to use their regular Cash App balance. The payment option will be mostly available in the USA, though the app is approved in the UK. 

Cash App added the cash-to-BTC feature just weeks after Square opened up BTC payment options. 

Lightning Network expands payment capacity

The Lightning Network has enjoyed the support of Jack Dorsey and other crypto influencers. The technology has been around since 2018, with significant growth in terms of growth and payment channels. 

The Lightning Network relies on the commitment of node operators, who are key in securing enough liquidity and payment channels. As of November 2025, the network carries over $500M in value. 

The main weakness of the network is its relative centralization, depending on the top channels to secure reliable liquidity. In theory, the network could also carry other types of balances and payments. The involvement with Cash App shows that time-tested crypto technology can find its way into fintech apps. 

BTC lags as a payment asset

BTC has been adopted by multiple payment tools, but has lagged behind as a payment asset. The coin’s high value prevents holders from spending and instead prompts them to move to other assets, such as stablecoins. 

Cash App already offers multiple channels, including various forms of digital dollars. The app was still among the first to offer seamless crypto buying and transfers to self-custody wallets. 

BTC is still used for peer-to-peer transfers, as the coins cannot be frozen, though the transactions are not confidential.