Breez Enables Direct Bitcoin-to-Stablecoin Transactions Without Custody Requirements

Key Highlights

• Breez enables direct stablecoin transmission from Bitcoin holdings without requiring users to maintain USDC or USDT balances.

• The payment solution operates across more than 30 different blockchain networks.

• Bitcoin remains in user wallets until the moment of payment execution and conversion.

• Application developers gain stablecoin payout capabilities without complex multi-chain infrastructure.

• Future updates will enable users to receive stablecoins from external blockchain networks.

Breez has introduced a novel payment mechanism that allows Bitcoin holders to transmit USDC or USDT without maintaining stablecoin balances. The technology operates through the company’s software development kit and facilitates transactions across more than 30 blockchain ecosystems. This innovation provides applications with a streamlined method to integrate stablecoin payment options without requiring users to pre-fund stablecoin wallets.

Bitcoin-to-USDC Payment Capability Now Available Through Breez SDK

The payment functionality has been integrated directly into Breez’s software development kit, which application developers utilize to incorporate Lightning Network payment capabilities. The architecture allows users to initiate transactions from Bitcoin holdings while delivering value to USDC-enabled recipients. Users benefit from eliminating the requirement to maintain separate USDC reserves prior to transaction execution.

The system performs recipient address verification and blockchain identification before transaction approval. It provides senders with complete visibility into routing paths, associated fees, payment amounts, and destination networks. Upon user confirmation, designated liquidity providers execute Bitcoin-to-USDC conversion and complete delivery to the intended recipient.

The solution leverages Lightning Network infrastructure alongside Breez’s proprietary Spark Layer 2 protocol for rapid settlement processing. Breez collaborates with industry partners such as Flashnet and Boltz to facilitate conversion operations and payment delivery. This approach allows developers to offer USDC payment functionality without constructing independent blockchain integration systems.

USDT Payment Functionality Extended Across Multiple Blockchain Networks

The platform additionally facilitates USDT transmission from Bitcoin balances using identical payment workflows. Users maintain Bitcoin exposure until payment initiation, while recipients receive USDT in their designated wallets. This architecture eliminates the burden of stablecoin wallet management prior to fund transmission.

Current functionality focuses exclusively on outbound stablecoin payments, based on the company’s deployment roadmap. Breez has announced intentions to incorporate stablecoin receiving capabilities from external blockchain networks in subsequent releases. This enhancement could transform the SDK into a comprehensive multi-asset payment infrastructure layer.

USDT maintains significant relevance in global remittance channels due to widespread preference for dollar-denominated transactions. Regional variations in blockchain adoption stem from differences in transaction costs and exchange accessibility. Breez’s support for 30 distinct chains provides developers with enhanced flexibility to serve diverse geographic markets.

Enhanced Functionality for Bitcoin Payment Ecosystem

This release expands stablecoin capabilities within Bitcoin payment infrastructure and Lightning Network-enabled applications. Breez currently provides services to over 75 applications via its SDK, including notable platforms like Deblock and Cake Wallet. This established distribution network provides the new payment feature with immediate accessibility across wallet and payment product ecosystems.

Breez secured $4.5 million in funding during December 2022 from investment firms including Fulgur Ventures and Ego Death Capital. Following this capital raise, the company has concentrated development efforts on Lightning Network tools for wallet applications, social platforms, and payment infrastructure. The latest product release advances this strategic direction into stablecoin delivery and remittance applications.

The broader Bitcoin payment sector has evolved beyond small-scale retail transaction processing. During February, Secure Digital Markets successfully executed a $1 million Lightning Network payment to Kraken exchange in less than half a second. Voltage launched a dollar-denominated credit facility integrated with Lightning payment infrastructure.