Lightspark Payments Europe - 1st EE CASP+EMI

Lightspark Payments Europe - 1st EE CASP+EMI

On 19 June 2026 Estonia's Financial Supervisory Authority (EFSA) issued the first standalone MiCA CASP licence together with an Electronic Money Institution (EMI) authorisation simultaneously in a single decision - the recipient is Lightspark Payments Europe AS, the company that until 8 months earlier operated as Striga Technology OÜ. This is a critical Estonian regulatory milestone and a strategic win for Lightspark Group, led by David Marcus (ex-PayPal president, ex-Meta Libra/Diem), which acquired Tallinn-based Striga in October 2025. In this in-depth review we analyse the full story - from Striga's 2018 beginnings to Lightspark's global Bitcoin Lightning ambition.

Key facts at a glance

• Date: 19 June 2026
• Company: Lightspark Payments Europe AS (ex-Striga Technology OÜ)
• Regulator: Finantsinspektsioon (EFSA)
• Licences: MiCA CASP + EMI simultaneous authorisation (first standalone in EE)
• Address: Pärnu mnt 110, 11313 Tallinn, Estonia
• Reg. number: 16298772
• Parent company: Lightspark Group, Inc. (Delaware, US) - 100% ownership
• Parent CEO: David Marcus (ex-PayPal president 2012-2014, ex-Meta crypto lead)
• Striga founder: Prashanth Balasubramanian (2018)
• Striga historic VASP licence: FVT000546 (Estonian FIU, 2022-09-20)
• Striga acquisition date: 14 October 2025
• Striga processed volume: >$200 million before acquisition
• Lightspark Series A: $175M (a16z + Coatue + Felix Capital, ~$1B valuation)
• EU passport: All 30 EEA countries (450M people market)

Striga history: from 2018 to the first EE VASP

The story begins in 2018 in Tallinn. Prashanth Balasubramanian, an Indian-born engineer who had moved to Europe and personally experienced cross-border banking difficulties as an immigrant, founded Striga (originally Wyre Europe) with a mission to build a better payments network anchored on Bitcoin. The goal was to build a regulated B2B API platform that lets fintech start-ups, banks and crypto exchanges integrate crypto-banking services.

The main inflection point came in 2022. After Estonia's AML law reform that entered into force on 15 March 2022 and introduced significantly stricter requirements for virtual asset service providers (VASPs), Striga Technology OÜ became the first Estonian VASP to obtain the new, significantly stricter licence - on 20 September 2022 under licence number FVT000546. This was not coincidence: before the reform Estonia had ~2,000 registered VASPs, most of which did not meet the new substance and compliance requirements, and licences were revoked. Striga was the first company to renew authorisation under the new rules.

In the past three years (2022-2025) Striga consistently developed its product:

• API custody - crypto holdings management for institutional clients
• Virtual IBANs - each client assigned a EUR IBAN account
• Card issuance - debit cards on the Visa/Mastercard network
• Fiat-crypto on/off ramps - direct SEPA → BTC/ETH/USDC and back
• 30 EEA country coverage - via EU passporting rights

Before the acquisition, Striga had processed >$200 million in transaction volume and served more than 50 fintech clients.

Lightspark acquisition: 14 October 2025

On 14 October 2025, Lightspark Group, Inc., a San Francisco and Delaware-based corporation, announced the acquisition of Striga. The deal value was not publicly disclosed but analysts speculate about a $80-150M range based on Striga's valuation in the latest funding round and Lightspark's strategic interest in EU regulatory coverage.

David Marcus, Lightspark CEO and founder, emphasised in the official statement:

"Striga deep regulatory expertise, licensing framework, and financial services stack, including direct integrations with fiat providers, card networks, and banks, will accelerate Lightspark's ability to bring compliant, borderless money movement to millions of users and businesses worldwide."

The strategic logic of the acquisition is crystal clear: Lightspark, the US-based Bitcoin Lightning Network infrastructure operator, needs an EU regulatory base to expand its product into the European market. Striga delivers exactly that - an already active VASP licence, a ready MiCA CASP application file, a network of partners (Visa, Mastercard, fiat ramps) and a competent team based in Tallinn.

What is Lightspark? David Marcus's empire

Lightspark Group, Inc. was founded in May 2022 in San Francisco with a mission to build Bitcoin Lightning Network global payments infrastructure. CEO David Marcus is one of the most famous fintech names in the world:

David Marcus's career

• PayPal president (2012-2014): Led PayPal as President when the company separated from eBay and became an independent public company (NASDAQ: PYPL).
• Meta (then Facebook) crypto head (2014-2022): Initially led Messenger, then redirected to crypto/blockchain strategy, where he founded the Libra (later Diem) stablecoin project - historically the largest corporate stablecoin attempt, which failed due to political pressure.
• Lightspark (2022-present): After Diem's shutdown, Marcus founded Lightspark with a focus on Bitcoin Lightning Network as a global payments infrastructure foundation.

Lightspark funding

Lightspark has raised significant capital:

• Series A (2022): $175 million from Andreessen Horowitz (a16z), Coatue Management and Felix Capital
• Valuation: Approximately $1 billion (post-money)
• Additional rounds: Undisclosed amount from a16z + Paradigm

In comparison, the largest Bitcoin Lightning infrastructure competitors, like Voltage and River Financial, have raised significantly less capital, making Lightspark the undisputed leader in this segment.

Lightspark product portfolio

1. Bitcoin Lightning Network infrastructure

Lightspark is the largest commercial Lightning Network node operator in the world. It offers APIs that let businesses integrate Lightning payments without maintaining nodes themselves.

2. UMA (Universal Money Address)

An open-source standard that lets users send and receive in any currency (USD, EUR, BRL) with usernames like [email protected]. UMA addresses two main crypto payment barriers - complex blockchain addresses and compliance requirements in cross-border transfers.

3. Grid Global Accounts (2026)

At Bitcoin 2026 conference, Marcus announced Grid Global Accounts - a product connecting 175 million Visa merchants in 33 countries with Bitcoin settlement. Goal: 75 countries and 100 Visa markets by end of 2026.

Key partners

Lightspark's partner list is impressive:

• Coinbase - 108 million users, Bitcoin Lightning integration since 2024
• Nubank - Latin America's largest digital bank with 100M+ clients
• Xapo Bank - Lightning access in 42+ countries
• Bitnob, Coins.ph, Foxbit, Ripio - African, Asian and Latin American wallets/exchanges

Standalone CASP + EMI: why it matters

The 19 June 2026 EFSA decision reveals a deeper regulatory logic. Most EU MiCA CASP licences are issued separately - a company simply has a CASP authorisation. EMI authorisation (Electronic Money Institution, part of PSD2 framework) is issued separately at other exchanges. Some exchanges, like Backpack EU or Paybis, have both, but issued at different moments.

In the case of Lightspark Payments Europe AS, EFSA issued both licences simultaneously in one decision - not formally a historical first (Backpack EU received both from Latvijas Banka on 27 May 2026), but the first in Estonia and one of the first standalone (not via existing bank affiliation) CASP+EMI cases in the entire EU.

This dual authorisation allows Lightspark Payments Europe to:

1. Hold client crypto assets (CASP custody)
2. Exchange crypto for fiat and vice versa (CASP exchange-fiat)
3. Issue e-money tokens (EMT) (EMI function)
4. Transfer fiat money in client accounts (EMI transfer services)
5. Issue virtual IBANs to clients (EMI function)
6. Issue Visa/Mastercard cards (via partners with EMI support)

Practically this means Lightspark can provide a full "neobank with crypto" stack - exactly what is referred to today as embedded finance or Banking-as-a-Service (BaaS).

B2B focus and product architecture

Unlike retail exchanges (Coinbase, Bitvavo, Coinmotion), Lightspark Payments Europe is an API-first B2B platform. That means users do not visit a website or mobile app, but integrate Lightspark via API into their products.

Typical users:

• Fintech start-ups: New neobanks that want to add crypto services without building their own compliance/custody infrastructure
• Existing banks: Traditional banks that want to experiment with crypto services without direct regulatory risk
• Crypto exchanges: Centralised and decentralised exchanges that need EU fiat on-ramps
• Web3 companies: DeFi protocols that need bridges to the traditional banking system

Lightspark Payments Europe API set includes:

Historical significance for Estonia and the Baltics

19 June 2026 is significant not only for Lightspark or Striga, but for the entire Estonian and Baltic fintech ecosystem. The context:

Estonia before this decision

Before 19 June, Estonia's official MiCA CASP registry had only one company - AS LHV Pank, which received its CASP licence on 18 May 2026. Lightyear Europe AS received its licence in November 2025, but operates as an investment neobroker, not a classic exchange. Other Estonian pre-MiCA VASPs (which numbered >2,000 before the 2022 reform) mostly did not renew MiCA licences because requirements were too strict.

Lightspark Payments Europe is the first standalone MiCA CASP + EMI dual licence in Estonia and the third overall authorised CASP in Estonia.

Competitive context with Latvia and Lithuania

• Latvia (Latvijas Banka): 7 MiCA CASPs (BlockBen, Nexdesk, Paybis, Neverless, Backpack EU, Twino Investments, Kanga Exchange EU)
• Lithuania (Lietuvos bankas): 8+ MiCA CASPs (Robinhood Europe, CoinGate, Nuvei Liquidity, BLUE EMI, Newrails, Myriad, Simplex etc.)
• Estonia (EFSA): 3 (Lightyear, LHV Pank, Lightspark)

Although Estonia has fewer numerically, Lightspark Payments Europe is the first global-scale company's EU base in Estonia - which can potentially significantly raise Estonia's reputation as a fintech jurisdiction.

Striga's historic role

Striga has been a kind of "Estonian fintech megaphone" in the past three years:

• First company to meet Estonia's new AML requirements (2022)
• First Estonian VASP with broad B2B API offering
• First globally recognised Estonian crypto-banking infrastructure platform
• First Estonian crypto company to be acquired by a US corporation with >$1B valuation

Now, as Lightspark Payments Europe AS, this platform becomes the first standalone EE MiCA CASP + EMI - this is a consistent continuation of the "first" narrative.

Impact on competitors and partners

Competitor view

Lightspark Payments Europe's appearance with the full CASP + EMI stack significantly changes the B2B crypto-banking competitive landscape in Europe:

• BVNK (Malta): Competitor in B2B stablecoin payment infrastructure - now has to compete against Lightspark Lightning Network advantages
• Wise Crypto, Revolut Business: Banking + crypto combos - Lightspark provides a B2B alternative
• Fireblocks, BitGo: Custody-only - Lightspark owns the full stack with Lightning
• Backpack EU (Latvia): The only other dual CASP + PI/EMI in EU - now a direct competitor

Existing Striga clients

Before acquisition, Striga served more than 50 fintech clients. After Lightspark integration:

• Existing API integrations continue to work (backward compatibility)
• Pricing model may change (Lightspark parent company)
• New Lightning Network connection possible
• striga.com domain may redirect to lightspark.com, but API/contact subpages remain active

Baltic/Nordic fintech opportunities

For Baltic and Nordic fintech start-ups, Lightspark Payments Europe is a significant new platform:

• Estonian start-ups can integrate locally regulated B2B crypto-banking infrastructure
• Latvian and Lithuanian fintechs can use Lightspark as a Bitcoin Lightning gateway to global markets
• Nordic neobanks (Lunar, Klarna, Trade Republic) can consider Lightspark integration for crypto services

Risks and challenges

Despite the EFSA win, Lightspark Payments Europe faces several challenges:

1. Post-acquisition integration

The Lightspark and Striga team merger is still an ongoing process. Technical migration (Striga API → Lightspark API), branding changes (striga.com → eu.lightspark.com), and cultural integration between the US-based Lightspark and Estonian Striga team may take 12-18 months.

2. David Marcus's regulatory history

David Marcus is famous not only for PayPal/Lightspark, but also for Meta's Libra/Diem stablecoin project, which was shut down due to political pressure. While Marcus now focuses on Bitcoin (open protocol), certain EU regulators may retain historical questions about Marcus's style.

3. Bitcoin Lightning Network risk

Lightspark's business model is heavily based on Bitcoin Lightning Network adoption. While Lightning has grown (>$500M capacity in mid-2026), it still faces technical challenges (channel management, watchtowers, liquidity bottlenecks) and competitive pressure from other payment technologies (stablecoins on Solana/Tron, Visa CBDC pilots).

4. US-EU regulatory arbitrage

Lightspark Group is a US-based corporation. The Estonian EFSA licence allows EU operation, but US regulators (SEC, FinCEN) can still influence Lightspark's global structure. With pressure rising, structural adjustments could happen.

Our verdict

Lightspark Payments Europe AS and its historic MiCA CASP + EMI dual licence is a triple turning point:

1. Estonian regulatory milestone: First standalone CASP + EMI dual licence in EE, consolidating Tallinn as a serious EU fintech jurisdiction
2. Lightspark global strategy: US-based Lightning Network operator gains a full EU base, expanding access to a 450M people market
3. Continuation of Striga team: Tallinn fintech show continued growth - from a small 2018 start-up to a global infrastructure brand's European arm

For Baltic and Nordic retail users this is not a direct new exchange - Lightspark Payments Europe is a B2B platform, not a retail trading venue. However, the indirect impact is large:

• More EU fintech start-ups will more easily offer crypto services (greater competition in retail market)
• Bitcoin Lightning Network will become more accessible via Lightspark partners (potentially lower payment fees)
• Estonia's reputation as a fintech hub will strengthen, attracting more investment to the region

NorriWire rating for Lightspark Payments Europe is 4.2/5 stars - high in the B2B segment, reflecting regulatory leadership, strong parent company backing and partner network, while acknowledging that this is not a retail service.

Related articles

• Bittiraha / Coinmotion deep dive - Finland's historical crypto service analysis
• LHV Pank MiCA crypto review - Estonian bank with BitGo/Bitstamp partners
• Boerse Stuttgart Digital deep dive - first EU MiCA CASP
• Safello deep dive - analysis of Sweden's historical BTC broker
• Qivalis euro stablecoin consortium - 37 European banks initiative
• Binance MiCA: Greece and the EU deadline - Binance HCMC situation
• Crypto security incidents H1 2026 - Zcash, Humanity, AudiA6

Sources

• Lightspark: Lightspark Acquires Striga
• Global Relay: Estonia grants its first standalone CASP licence under MiCA
• Striga: Lightspark acquires Striga
• GlobeNewswire: Lightspark Acquires Striga - A Leap Forward for Open, Compliant Payments on Bitcoin
• BalticVC: Estonian crypto startup Striga acquired by US-based Lightspark
• Fintech in Baltic: Striga Secures VASP License Under Estonia Enhanced Regulations

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AI disclosure: An AI assistant was used in preparing this article. The facts and market data were verified by a NorriWire editor before publication.

This is not financial advice. Cryptocurrency values can fluctuate significantly. Familiarise yourself with the risks before investing.