Amboss, a company best known for building tools and liquidity infrastructure for the Bitcoin Lightning Network, announced the launch of RailsX, a new peer-to-peer exchange designed to let users trade bitcoin and stablecoins directly with one another — without relying on centralized exchanges or giving up custody of their funds, the company shared with Bitcoin Magazine.
The announcement was made today at the PlanB Forum in El Salvador.
At a high level, RailsX aims to solve a problem many Bitcoin users still face: moving between bitcoin, dollars, and other currencies usually requires trusting centralized platforms that can freeze accounts, charge high fees, or restrict access based on geography.
RailsX instead uses Bitcoin’s Lightning Network to enable direct trades between users, keeping funds under users’ control at all times.
Unlike traditional crypto exchanges, RailsX does not hold customer assets or operate an order book in the conventional sense. Instead, it acts and facilitates peer-to-peer swaps using Lightning payment channels, allowing users to exchange bitcoin and Lightning-issued stablecoins instantly and at very low cost.
Amboss says the system is designed to support stablecoins issued on Bitcoin using Taproot Assets, a newer protocol that allows assets like dollar-pegged tokens to be created and transferred over Bitcoin’s Lightning Network. That means users can move between bitcoin and stablecoins without leaving Bitcoin’s infrastructure or touching another blockchain.
Amboss’ lightning-based stablecoins could democratize currency trading across Bitcoin
Why does this matter? Today, the global foreign exchange market — where currencies like dollars, euros, and pesos are traded — moves roughly $9.5 trillion per day, but access to it is largely limited to banks, brokers, and large financial institutions.
Amboss argues that Lightning-based stablecoins and peer-to-peer trading could open currency exchanges to anyone with an internet connection, a Lightning wallet, and self-custodied funds.
RailsX builds on Amboss’s existing product, Rails, which allows users to provide liquidity to Lightning channels and earn fees while maintaining custody of their bitcoin or stablecoins. Together, the two products aim to create a more liquid Lightning ecosystem, making it easier for payments and trades to route efficiently across the network.
To bridge the gap between Bitcoin and traditional finance, Amboss is also partnering with companies including Magnolia and Bringin to provide fiat on- and off-ramps in the U.S. and Europe. This would allow users to convert between bank money and Lightning-based assets without using a centralized crypto exchange.
The launch comes amid renewed interest in bringing stablecoins back to Bitcoin. Industry leaders, including Tether CEO Paolo Ardoino and Lightning Labs CEO Elizabeth Stark, have recently signaled support for issuing USDT and other stablecoins natively on Bitcoin using Taproot Assets.
“RailsX represents the next step in Bitcoin’s evolution,” said Amboss CEO Jesse Shrader in a statement, framing the product as a way to scale Bitcoin’s use beyond speculation and toward everyday financial activity.
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