They are not avoiding regulation at all — they are avoiding legacy money transmission networks! They are regulated because they transmit money in the US (KYC/AML etc).
It’s using the Lightning Network to replace traditional interbank networks like Swift. Or ACH (at least for outgoing payments) If you don’t see this as a valuable thing, I’m sorry.
It also allows arbitrary payments to lightning invoices denominated in USD, you can pay any user of the app, or any lightning invoices.
You don’t need to connect to lightning nodes - it is a network and if you need to route through them, it will.
Why bitcoin? Because they don’t need to maintain a liquidity pools and use swift to balance the USD pools. They can use cheap LN payments to instead of swift for settlement. Note that LN is unfairly cheap to use. An order cheaper than swift.
It’s using the Lightning Network to replace traditional interbank networks like Swift. Or ACH (at least for outgoing payments) If you don’t see this as a valuable thing, I’m sorry. It also allows arbitrary payments to lightning invoices denominated in USD, you can pay any user of the app, or any lightning invoices.
You don’t need to connect to lightning nodes - it is a network and if you need to route through them, it will.
Why bitcoin? Because they don’t need to maintain a liquidity pools and use swift to balance the USD pools. They can use cheap LN payments to instead of swift for settlement. Note that LN is unfairly cheap to use. An order cheaper than swift.