I was just talking to my dad about lightning and he said “can I send BTC from my green wallet to a Lightning wallet? Do they do app transfers? I’ve only ever sent bitcoin to another person, not another bitcoin app.”

I chuckled that he didn’t get the fact that a “person” is just an address, and an app 2 app transfer is just an address too.

Then I thought … he has a point.

Why don’t custodial bitcoin wallets like Muun use Liquid for app to app settlement 🤔

You’re already trusting them as it’s custodial, they could use liquid for instant transfer of any size.