Bitcoin Lightning Network Updates
The most impactful Bitcoin Lightning Network updates since 2023 are now landing in production: Taproot Assets (stablecoins & multi-asset over Lightning), BOLT12 Offers, splicing, taproot channels, and Bitcoin Core v28’s v3/1-parent-1-child package relay all translating into better privacy, liquidity, and real-world usability.
Enterprises like Coinbase and Revolut are moving meaningful traffic to Lightning, while Tether’s USDT is coming to Bitcoin/Lightning via Taproot Assets.
Why this matters now
If you’ve been waiting for a concrete step-change, 2025 is it. Bitcoin Core v28.0 made version-3 (TRUC) transactions standard and introduced limited 1-parent-1-child package relay, giving Lightning implementations sturdier fee-bumping and anti-pinning tools—key for reliable channel operations during high-fee periods. Meanwhile, Taproot Assets v0.6 matured stablecoin support over Lightning, and BOLT12 Offers plus splicing are shipping widely across major stacks. Together, these Bitcoin Lightning Network updates are pushing Lightning toward mainstream payments infrastructure.
The State of Play (September 22, 2025)
Bitcoin Core v28.0
V3/TRUC tx are now standard; limited P2P package relay (1-parent-1-child), submitpackage RPC, and fee-policy improvements directly beneficial to Lightning’s on-chain interactions (opens, closes, sweeps).
Taproot Assets v0.6 (Lightning Labs)
First multi-asset Lightning protocol on mainnet; improves stablecoin issuance/transfer over Lightning. USDT announced for Bitcoin + Lightning (Jan 30, 2025).
BOLT12 Offers
Production support in Core Lightning (CLN) and Eclair; offers bring reusable, privacy-preserving invoices with onion messages & blinded paths.
Splicing
Dynamic channel resizing now in production for wallets (e.g., Phoenix) and CLN; reduces channel management friction.
Taproot Channels in LND
Simple Taproot Channels landed in LND v0.17.0-beta, improving privacy and cost (initially unadvertised until gossip upgrades)
Core Protocol Changes Powering These Bitcoin Lightning Network Updates
v3 (TRUC) Transactions & Package Relay
Bitcoin Core v28.0 treats nVersion=3 transactions as standard on all networks and allows limited package relay (1p1c), enabling robust CPFP/RBF fee management for Lightning’s time-sensitive transactions. That means fewer stuck closes and more predictable channel ops when feerates spike.
What it unlocks for LN
Anti-pinning & reliable fee bumps for HTLC-related transactions.
More predictable sweeps during congestion.
A foundation for future policies like ephemeral anchors (still a proposal) to further improve fee sponsorship.
Reusable, Private, Flexible
BOLT12 Offers let receivers publish a single “offer” that payers can query to generate an invoice on demand no more invoice reuse. They leverage onion messages and blinded paths for better privacy. CLN and Eclair shipped meaningful support in 2024–2025 releases (with ongoing interop).
Splicing: Dynamic Channel Resizing Without Downtime
With splicing, users add or remove on-chain funds to a live channel without losing payment capability huge for UX. Phoenix demonstrated consumer-grade splicing; CLN integrated splicing; Eclair refined splicing with spec updates. This is one of the most user-visible Bitcoin Lightning Network updates.
Feature Rollouts Across Implementations
Core Lightning (CLN)
Recent CLN releases tightened splicing interoperability and made BOLT12 Offers more robust (e.g., using a blinded path when no address is advertised). CLN also strengthened channel type negotiation and made payment secrets mandatory in BOLT11 invoices to mitigate probing.
LND
LND v0.17.0-beta introduced Simple Taproot Channels (better privacy, lower footprint), laying groundwork for future channel improvements and asset routing. Early phases were unadvertised, pending gossip updates (e.g., Gossip 1.75).
Eclair
Eclair v0.11.0 added official BOLT12 support, and later v0.12.0 provided RPCs to create/manage offers and tapped Bitcoin Core v28 benefits for package relay. Eclair is also iterating on splicing and taproot channel prototypes.
LDK (Lightning Dev Kit)
LDK’s ongoing work includes BOLT12 features (async payments, blinded paths), and active splicing discussions helping mobile and custom app devs build tailored LN experiences.
Taproot Assets & Stablecoins Over Lightning
Lightning Labs released Taproot Assets on mainnet (July 2024) and v0.6 (June 2025), enabling minting and routing assets such as stablecoins over Lightning. On Jan 30, 2025, Tether announced USDT for Bitcoin & Lightning, signalling a major expansion of multi-asset Lightning. For fintechs and remitters, this collapses settlement times and dramatically lowers costs while keeping Bitcoin as the settlement anchor. lightning.engineering+2lightning.engineering+2
What to watch:
Asset liquidity bootstrapping and wallet support cadence.
Regulatory implications by region (e.g., treatment of stablecoin transfers over LN).
Interop vs. alternative asset-over-Bitcoin protocols (e.g., RGB)
Phoenix Leads With Splicing & Cheaper On-Chain Deposits
Phoenix (ACINQ) shipped the first mainstream splicing UX, letting users keep a single dynamic channel with predictable fees and instant availability. Swaproot further reduced on-chain deposit costs by 16–27% depending on inputs, and improves privacy—a tangible user win. These wallet-level Bitcoin Lightning Network updates translate directly to fewer surprises for end-users.
Enterprise Adoption: From Coinbase to Revolut (and Africa)
Coinbase
Integrated Lightning in April 2024 (via Lightspark) and by April 2025 said ~15% of its BTC transaction volume was already moving over Lightning—an adoption curve few expected this quickly.
Revolut
Announced Lightning rollout for U.K./EU users in May 2025 (Lightspark infra), onboarding a massive mainstream user base to LN payments.
Chipper Cash (Africa)
Is routing 50%+ of its Bitcoin transfers via Lightning (Voltage infra), illustrating Lightning’s value in remittance-heavy markets.
Mini Case Study #1 Coinbase
Post-integration, Coinbase saw sizable migration of routine BTC sends to Lightning (≈15%), saving customers time/fees and easing on-chain congestion during peak periods. This is one of the clearest enterprise-scale validations of this year’s Bitcoin Lightning Network updates.
Mini Case Study #2 Chipper Cash
By pushing half of its BTC flows through Lightning, Chipper shows how L2 rails make cross-border micro-payments workable at scale. The lesson: if your business runs frequent, smaller BTC transfers, Lightning can drastically cut friction.
Public Capacity vs. Real Usage
Public LN capacity fell ~20% in 2025, prompting headlines. But the metric can understate usage when flows move through private channels, custodial nodes, multi-path payments, or assets over Lightning. River’s 2023 research estimated 6.6M routed tx in Aug 2023 +1,212% vs Aug 2021 while average payment sizes stayed small (≈$12), aligning with Lightning’s “internet payments” niche. The divergence between visible capacity and actual usage is becoming structural as this year’s Bitcoin Lightning Network updates shift traffic patterns.
Developer Notes & Roadmap Signals
Taproot channels
LND’s early deployment (unadvertised) anticipates future gossip upgrades for public reachability.
Ephemeral anchors
still a proposal, but increasingly discussed as a complement to v3 policy for flexible fee sponsorship.
Package relay & wallet changes
Bitcoin Core 28.0 recommends wallet authors adapt to new policies, especially for RBF/CPFP and package submission.
BOLT12 interop
continued smoothing across CLN/Eclair/LDK; broadened tooling (RPCs, SDKs) for offers.
Quick Readiness Checklist (for Builders & Businesses)
Add Lightning now
(Lightspark/Voltage/self-host with LND/CLN/Eclair) and route small-value BTC flows over LN.
Plan for assets
Evaluate Taproot Assets for stablecoin needs; follow Tether/USDT rollout and wallet support.
Enable BOLT12 Offers
Where supported to simplify collections and improve privacy.
Optimize for v28
Ensure your stack handles v3/TRUC and package relay safely for fee management.
Adopt splicing
To cut operational friction and smooth liquidity management.
Concluding Remarks
The Bitcoin Lightning Network updates landing across 2024–2025 v3/1p1c package relay, BOLT12 Offers, splicing, taproot channels, and Taproot Assets are more than patch notes; they’re the groundwork for instant, low-fee, multi-asset payments anchored to Bitcoin. Enterprises are already moving meaningful volume, wallets are shipping better UX, and developers have stronger primitives to weather fee spikes.
If you’re shipping crypto products, this is your window: integrate Lightning, experiment with offers and splicing, and watch USDT over Lightning open new corridors. The next cohort of fintechs will treat Lightning as the default fast path and late adopters will feel it first in user churn, then in cost.
CTA: Want a battle-tested plan to integrate these Bitcoin Lightning Network updates into your stack? Contact us for a 2-week Lightning readiness sprint.
FAQs
1) How do I start accepting Lightning payments quickly?
A . Use a managed provider (e.g., enterprise nodes) or deploy LND/CLN/Eclair with best-practice backups. Start with small limits, test fee behavior under load, and monitor route reliability. Add BOLT12 Offers as your stack supports them, then graduate to self-hosted nodes.
2) How does v3 (TRUC) in Bitcoin Core 28 help Lightning?
A . v3/TRUC reduces pinning risk and enables limited package relay, making fee bumps for time-critical LN transactions more predictable during congestion. Expect fewer stuck closes and safer sweeps.
3) How can stablecoins run over Lightning?
A . Via Taproot Assets, which lets wallets mint and route assets like USDT over Lightning for instant settlement and low fees. Production tooling improved with v0.6.
4) What are BOLT12 Offers and why should I care?
A . Offers are reusable payment intents that generate invoices on demand, improving privacy & UX versus static invoices (BOLT11). They reduce failed payments and simplify collections.
5) How do splicing upgrades affect my wallet or app?
A . Splicing lets you resize channels without downtime, cutting liquidity headaches and reducing on-chain churn. For users, it means smoother deposits and fewer surprises.
6) How can my team prepare for asset routing over Lightning?
A . Audit KYC/AML obligations, evaluate counterparties, and test Taproot Assets in staging. Track wallet support and liquidity providers as USDT on Lightning rolls out.
7) What’s the reality behind the 2025 capacity drop?
A . Public capacity fell ~20%, but routed payments were already up 1,212% (2021–2023), and more flows are private/custodial. Capacity ≠ usage.
8) How can I reduce fees and failures?
A . Adopt v28-aware node versions, tune fee policies, use multi-path payments, and leverage splicing for right-sized channels. Where supported, offers and blinded paths improve success rates.
9) How do taproot channels change privacy?
A . Taproot channels hide channel opens/closes better and reduce on-chain footprint. Early LND support is unadvertised pending gossip changes, but benefits accrue as interop grows.