Amboss introduces a self-custodial bitcoin yield product on Lightning Network

Amboss, an AI-driven solutions provider for the Bitcoin Lightning Network, has unveiled a self-custodial yield generation service called Rails, tapping into the earnings potential of the Layer 2 ecosystem.

Rails is designed for users to earn yield on their bitcoin by acting as Liquidity Providers (LPs) while maintaining full custody and bolstering the Lightning Network’s performance and scalability, according to a statement shared with The Block.

Though returns are not guaranteed, yield can be generated from activities such as payment routing and liquidity leasing, the firm said. Built on Amboss’ AI infrastructure, Rails also helps improve the speed, reliability, and capacity of Lightning transactions, it argued.

The service includes Rails LP, aimed at companies with bitcoin treasuries, custodians, and high-net-worth individuals with a minimum commitment of 1 BTC for one year, and Liquidity Subscriptions, tailored for businesses that accept bitcoin payments, with fees starting at 0.5%.

“Rails is a transformative force for the Lightning Network,” Amboss co-founder and CEO Jesse Shrader said. “It’s not just about yield — it’s about enabling businesses to strengthen the network while earning on their bitcoin. This is a critical step in bitcoin’s evolution as a global medium of exchange.”

Amboss has partnered with bitcoin exchange CoinCorner and Flux (a joint venture between Axiom and CoinCorner) to launch Rails. CoinCorner has integrated the service into its exchange and payment systems, while Flux aims to use it to expand Lightning’s role in global payments.

“Rails offers a practical way for businesses like ours to participate in the Lightning Network’s growth,” CoinCorner CFO David Boylan said. “We’ve been using the Lightning Network for years, and Rails provides a structured approach to engaging with its economy, particularly through liquidity leasing and payment routing. This aligns with our goal of making bitcoin more accessible and practical for everyday use.”

Addressing Lightning Network adoption

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

Participants have previously faced challenges in sourcing liquidity and managing Lightning channels, which have hindered enterprise adoption and fueled the use of centralized custodial solutions.

While Lightning Network adoption has continued to grow in U.S. dollar terms alongside bitcoin’s price rise with a total known capacity of around $475 million, according to The Block’s data dashboard, its capacity in BTC terms appears to have stagnated in the 4,400 BTC to 5,600 BTC range since 2022 — something Rails aims to help to address. However, not all Lightning nodes and channels are public, so it isn’t easy to measure the network’s full BTC capacity.

“Liquidity is the backbone of the Lightning Network, ensuring smooth and efficient transaction routing across its nodes and channels,” Amboss said. “Rails empowers Liquidity Providers to contribute to this vital resource, enhancing the network’s capacity to support high-value, reliable payments. By addressing liquidity demands, Rails not only creates yield opportunities for participants but also fortifies the infrastructure that makes bitcoin a viable medium of exchange for businesses worldwide.”

The potential on the payment routing side, in particular, was highlighted during a presentation by Block’s Bitcoin Product Lead, Miles Suter, at Bitcoin 2025 in Las Vegas on Wednesday, sharing a 9.7% yield earned from the Lightning Network while still holding the keys to its bitcoin. Block, formerly Square, is the payments company co-founded by Jack Dorsey.

“The biggest news at [Bitcoin 2025] just dropped,” Lightning Labs Director of Business Development Ryan Gentry posted on X. “Miles Suter shared that the c= routing node is earning 9.7% APR on its bitcoin liquidity (which I’d estimate at ~$10M, 50% of its 184 BTC of public capacity).”

“B-b-b-but no one uses Lightning!” Lightning Labs CTO Olaoluwa Osuntokun added. “Blocks may not be full, but a large portion of traffic has migrated off-chain, growing at a steady rate. What if I told you that anyone can join the LN, deposit some sats, and compete with the likes of Block?”