Amboss launches RailsX, the Lightning-native DEX for swapping Bitcoin and stablecoins

Amboss Technologies has introduced RailsX, described as the first decentralized exchange (DEX) built directly on the Lightning Network, enabling peer-to-peer swaps between bitcoin and stablecoins.

According to Amboss, RailsX uses Lightning payment channels to perform atomic swaps through a circular payment mechanism, allowing users to trade directly while maintaining custody of their assets without the need for intermediaries or separate blockchains.

This platform combines Amboss’s Magma liquidity marketplace with Taproot Assets technology to support decentralized trading. The company states that this approach aligns with their interpretation of the Clarity Act draft legislation in the US.

RailsX operates alongside their self-custodied bitcoin yield product called Rails, launched in May 2025. Both platforms aim to build a more comprehensive ecosystem for liquidity providers on Lightning.

Amboss has also partnered with Magnolia and Bringin to connect their systems with traditional banking infrastructure in the US and Europe, supporting conversions between fiat currency and digital assets. The company believes this could pave the way for access to global foreign exchange flows, a market with an estimated daily trading volume of around $9.5 trillion.

The announcement comes amid continued growth of the Lightning Network. Market data shows the total network capacity in USD surpassed $500 million in January, while capacity in BTC reached approximately 5,770 BTC — a 55% increase from the low of around 3,730 BTC recorded in August last year.

Amboss previously raised $4 million in a Seed round in 2023 from Stillmark and other investment funds. The company has also expanded its product suite, including the launch of the “Ghost Addresses” feature to reduce reliance on custodial Lightning wallets.