Bitcoin Neobank Wavespace Rolls Out NWC-Powered Self-Custody Card Under MiCA Framework

Wavespace, a Bitcoin-focused neobank operating in the Eurozone, has confirmed regulatory compliance under the EU's Markets in Crypto-Assets (MiCA) framework and unveiled a self-custodial debit card that draws funds directly from users' own Lightning nodes via the Nostr Wallet Connect (NWC) protocol.

The card operates over the VISA network and eliminates the need for manual preloading of custodial balances — a longstanding limitation in the crypto debit card market. Instead, users set a minimum balance threshold, and each time a payment is processed, Wavespace automatically pulls satoshis from the user's self-hosted Lightning wallet to replenish the card. The mechanism is defined under NIP-47, a specification developed within the Nostr ecosystem, which has expanded from social media into Bitcoin payment infrastructure.

Traditional crypto debit cards required users to deposit bitcoin or stablecoins into a custodial account in advance, typically through on-chain transactions that required manual steps and settlement delays. If the preloaded amount was exhausted, the card ceased to function. Wavespace's architecture removes these friction points while keeping the user's funds off the exchange until the moment of spending.

In addition to the debit card, Wavespace provides users with a personal IBAN account, enabling direct euro transfers for Bitcoin purchases. The platform offers automated dollar-cost averaging (DCA) with an option to withdraw purchased bitcoin immediately to a user-specified self-custody address.

Because card payments are processed via the Lightning Network rather than on-chain transactions, user payment data is not recorded on the public Bitcoin blockchain. Lightning transactions route through private payment channels, leaving no single public trace — an approach the company frames as a balance between financial privacy and regulatory compliance in a jurisdiction with strict oversight.

Eivydas Račkauskas, Chief Orange Pill Giver at Wavespace, stated in an interview with Bitcoin Magazine that 70% of all payments on the platform are settled via the Lightning Network. He also disclosed that the company is evaluating the ARK protocol for additional self-custody payment integrations and that Wavespace is already integrated with Lightspark. Račkauskas confirmed plans for a U.S. market expansion, though no timeline or further details were provided.

On the funding side, Wavespace has operated largely on a bootstrapped basis. The company received an angel investment from Relai in 2025 and is currently conducting a new fundraising round. Račkauskas did not disclose the target size of the current round.

MiCA compliance positions Wavespace among a limited number of crypto exchanges and neobanks that have met the EU's updated regulatory requirements, which came fully into effect and prompted several competitors to exit the European market or discontinue services for EU-based users.