Amboss Technologies has launched RailsX, a peer-to-peer bitcoin (BTC) and stablecoin trading platform built natively on the Lightning Network.

In a statement shared with The Block, Amboss said RailsX enables users to trade bitcoin against stablecoins while retaining self-custody, and debuts with two stablecoin-bitcoin pairs: USDT-L and USDC-L, both issued by Speed Wallet.

Trades execute atomically over Lightning payment channels, settling in seconds with minimal fees, according to Amboss. There is no centralized order book and no intermediary holding assets, with users maintaining full control of their private keys at all times.

Initially unveiled in January, RailsX is now live for early users via open source node manager Thunderhub, with no additional setup required, the firm said, adding that it is coordinating liquidity formation across BTC/stablecoin pairs to support growing trading volume.

The platform combines Amboss's liquidity marketplace, Magma, with Taproot Assets to facilitate decentralized trading, which the company previously said aligns with its interpretation of U.S. draft Clarity Act legislation. It also builds on Amboss's existing Rails product, which enables users to supply liquidity to Lightning channels and earn yield without surrendering custody.

The announcement follows recent public commentary from industry leaders, including Tether CEO Paolo Ardoino and Lightning Labs CEO Elizabeth Stark, who have discussed efforts to bring stablecoins back to Bitcoin using Taproot Assets.

How RailsX works

The Lightning Network is a second-layer solution of payment channels built on top of the Bitcoin blockchain, designed to enable fast and low-cost transactions. 

RailsX is designed to operate as a Lightning-native trading layer, expanding from current payments and swaps to fully self-custodial stablecoin trading across Lightning.

Trades are routed through existing Lightning channels, meaning that settlement is near-instant and remains within the Bitcoin ecosystem, the firm said, adding that the structure removes the need to use centralized exchanges or trust a third party.

"RailsX lets users trade, hold, and move value on Lightning without ever giving up control of their money," Amboss CEO and co-founder Jesse Shrader said. "We're unlocking Bitcoin's potential as a medium of exchange by serving global stablecoin demands without cross-chain DeFi risks."

Speed Wallet handles the underlying custody and issuance for both USDT-L and USDC-L, ensuring all assets remain fully backed and transparent. While Speed Wallet had already been operating wrapped stablecoins, the launch of RailsX means that infrastructure is now available to the entire Lightning Network, not just Speed's own users.

"Speed Wallet built this technology with one goal: to make stablecoins on Lightning accessible to everyone," Speed Wallet CEO Raj Patel said. "RailsX is exactly the kind of distribution platform we envisioned, one that opens this up to the entire Lightning Network and takes self-custody stablecoin trading mainstream."

Lightning Network capacity dropped sharply earlier this year as the bear market price action took hold, though it has largely consolidated over the past two months. According to The Block’s data dashboard, the network's total U.S. dollar capacity stands at around $380 million, while its bitcoin capacity hovers at roughly 4,870 BTC.

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