Scalability: By having users transact within the mint using anonymous e-cash tokens instead of directly on the Lightning Network, federated mints can handle a high volume of transactions off-chain, reducing load on the Lightning Network.[1][2] This enables scaling for large payments.

Privacy: Transactions within the mint are anonymous and unlinkable, providing better privacy than regular on-chain or Lightning transactions.[3] This is beneficial for large value transfers where privacy is desired.

Reduced Trust: Rather than trusting a single custodian, trust is distributed across a federation of parties running the mint.[1][4] This lowers counterparty risk for large transactions.

Interoperability: Federated mints can integrate with the Lightning Network through "Lightning Gateways", allowing users to seamlessly make and receive Lightning payments from outside the mint.[4][5]

Reduced Fees: By batching transactions off-chain within the mint, fees for large payments can be significantly reduced compared to on-chain or per-transaction Lightning fees.[1]