SoFi Leads U.S. Banks with 24/7 Bitcoin Lightning Remittances
SoFi Technologies will use the Bitcoin network to increase its competitiveness in the $740 billion global remittance market.
Quick overview
- SoFi Technologies has partnered with Lightspark to utilize the Bitcoin network for international money transfers, targeting the $740 billion remittance market.
- As the first US bank to adopt the Bitcoin network and Universal Money Address, SoFi will enable users to send money to countries like Mexico via the Lightning Network.
- The new service allows real-time conversion of US dollars to Bitcoin, facilitating direct transfers to recipients' bank accounts in their local currency.
- SoFi aims to provide low-cost, transparent fees for its 11.7 million users, enhancing their ability to send money internationally through the SoFi app.
In collaboration with Lightspark, SoFi Technologies will use the Bitcoin network to increase its competitiveness in the $740 billion global remittance market.
SoFi Technologies, becomes the first US bank to use the Bitcoin network and Universal Money Address. This will let people from the US, Mexico, and other countries send money through Lightning Network.
SoFi announced on Tuesday that it has teamed up with Bitcoin BTC payments infrastructure Lightspark to debut its blockchain-powered international money transfer service. The service will be launched in Mexico later this year.
Anthony Noto, CEO of SoFi, said on X, “For many SoFi members who regularly send money to loved ones internationally, the ability to quickly transfer money at low cost isn’t just a convenience, it’s a meaningful improvement to their everyday financial lives,”
Noto said that customers would be able to send money to other countries just from the SoFi app. It competes in a congested worldwide remittance business that was worth $740.5 billion in 2024.
Meanwhile, SoFi’s new international money transfer service, backed by UMA, will let clients change US dollars into Bitcoin in real time and send the money across borders using the Bitcoin Lightning network. The money will go straight to the recipient’s bank account in their country’s currency.
Lightspark’s UMA lets people send money using an email-like address and Bitcoin Lightning. David Marcus, who used to be the president of PayPal, started the company in 2022.
SoFi said that expenses would be “below the current national average” and that members would be able to see the fees and conversion rates before sending money to “ensure full transparency.”
SoFi’s 11.7 million users will be able to use the service at any time of day, every day.
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