Polymarket has enabled instant self-custodial Bitcoin deposits through the Lightning Network using payment infrastructure from Spark. According to reports from Bitcoin Magazine, this upgrade allows users to deposit Bitcoin into the prediction market platform with more speed and more privacy than the older on-chain method. The feature addresses the challenge of confirmation delays that can impact traders entering fast-moving live prediction markets. As reported by Spark on X, this move extends a funding push that started in October 2025, when Polymarket switched on standard on-chain Bitcoin deposits. The on-chain route previously required 3-6 confirmations (10-60 minutes) before platform credit, while the new Lightning method credits deposits in under a second with near-zero fees. The on-chain route carried a higher minimum deposit due to bridging costs, making the faster Lightning method particularly valuable for traders seeking immediate market access.
As reported by Bitcoin Magazine, Spark is a Bitcoin payments protocol built for fast transfers and stablecoin payments, developed by Lightspark and built on statechain technology that moves Bitcoin ownership off the main chain while preserving user custody. The protocol validates Bitcoin transactions when they are broadcast instead of waiting for normal confirmation times, allowing deposits to settle in seconds. Spark checks for double-spend risk, fee adequacy, and replace-by-fee signals before crediting deposits, using what the company calls a 'zero-conf' model. This system allows Polymarket to support Bitcoin deposits without running its own Lightning nodes or setting separate confirmation rules for users. According to Spark, the protocol credits deposits in under a second and absorbs confirmation risk, with a single Spark SDK handling on-chain, Lightning, and stablecoin rails. The protocol keeps deposits self-custodial, meaning each wallet links to the user's own keys while Spark manages the payment route in the background. Spark counts wallet providers such as Breez, Xverse, and Cake among teams building on the same rails, with Tether CEO Paolo Ardoino praising the protocol as "A route to programmable Bitcoin over Lightning."
The feature can work with several apps and exchanges that support Lightning withdrawals, including Cash App, Coinbase, Kraken, Binance, OKX, Wallet of Satoshi, Tether Wallet, and Cake Wallet. As reported by Spark, the protocol supports real BTC rather than wrapped Bitcoin, meaning users aren't depositing a separate token that merely tracks Bitcoin's price. However, the trading layer itself operates in pUSD, the native token of Polymarket which is one-to-one pegged to USDC issued by Circle in the Polygon blockchain. According to Polymarket documentation, the bridge system generates deposit addresses for various blockchains, including BTC addresses associated with a user's Polymarket wallet. When users send BTC through Lightning Network, the balance on Polymarket still appears to need conversion into pUSD before it can be used to buy or sell market shares. The probable conversion chain will look like BTC in, pUSD out, with the bridge in Polymarket converting funds to pUSD, though Polymarket has not publicly detailed the exact conversion route for the new Spark-powered Lightning Network deposits.
The update comes as prediction markets continue to draw heavy activity, with World Cup trading pushing Polymarket-linked contracts past about $5 billion and broader prediction market volume reaching $44.8 billion in June. However, the faster deposit system faces intensifying competition as rival exchange Kalshi posted $5.42 billion in April taker volume, overtaking Polymarket's $1.99 billion for the first time as the sector's monthly total hit $8.6 billion. Kalshi recently unveiled perpetual futures trading for U.S. markets, broadening its offering beyond simple event contracts as it works to reclaim ground from its regulated rival. The faster, cheaper funding lowers the barrier for Bitcoin holders who make up a large share of the crypto audience, and provides Polymarket with a fresh answer to rivals that have pressed it on volume. The protocol reduces fees and minimums to boost crypto adoption, funding flow and Polymarket's trading velocity against rivals like Kalshi, with deposit speed, fees, and asset coverage likely to decide where the next wave of prediction market capital lands.
According to crypto.news, the new deposit feature arrives while Polymarket faces closer regulatory checks in several markets. The CFTC opened a broad investigation into Polymarket's business activity and social media operations. Additionally, South Korea delayed any enforcement decision while giving the platform a chance to respond to concerns over possible gambling-law violations. The company is also facing legal pressure in New York, where two users sued Polymarket after alleging the platform wrongly denied payouts on a Strategy Bitcoin market. Founded in 2020, Polymarket rose to prominence during the 2024 U.S. presidential election and has added Chainlink oracles, earnings markets, and a fresh contest with regulated rival Kalshi.
