SoFi Becomes First U.S. Bank To Use Bitcoin Lightning
SoFi Becomes The First U.S. Bank To Integrate Bitcoin Lightning Network For International Remittances
SoFi Technologies has officially partnered with Lightspark to launch an international money transfer service powered by the Bitcoin Lightning Network and Universal Money Address (UMA). With this move, SoFi is set to become the first U.S. bank to adopt Bitcoin’s infrastructure for global remittances, a market valued at over $740 billion in 2024.
SoFi Pioneers Blockchain-Based Remittances In U.S. Banking
The new blockchain-powered remittance service is expected to roll out later this year, starting with Mexico as the first market. Customers will be able to send money directly through the SoFi mobile app, enjoying fast transfers, lower fees, and transparent exchange rates.
SoFi CEO Anthony Noto highlighted the impact of this launch for members who regularly send money abroad, stating on X (formerly Twitter):
“The ability to transfer money quickly at low cost is not just a convenience — it’s a meaningful improvement in people’s daily financial lives.”
How It Works: UMA + Lightning Network
The new service combines blockchain innovation with user-friendly features:
- Convert USD to Bitcoin in real time.
- Route the transaction through the Bitcoin Lightning Network for instant cross-border transfers.
- Deliver funds in local currency directly to the recipient’s bank account.
With UMA technology developed by Lightspark, users can send money using an address as simple as an email, but fully supported by Lightning. This simplifies global payments while ensuring speed, transparency, and cost efficiency.
Lower Fees, Transparent Pricing
SoFi has pledged to keep transaction costs below the national average, while clearly displaying both exchange rates and service fees upfront before sending. The service will be available 24/7 and accessible to all 11.7 million SoFi members.
Lightspark’s Expanding Role In Global Finance
Founded in 2022 by David Marcus (former PayPal President), Lightspark has quickly become a leading player in blockchain payment infrastructure.
- In April 2024, Coinbase integrated Lightspark’s Bitcoin infrastructure, with 15% of all Bitcoin transactions on Coinbase processed via Lightning rails in the first year.
- In June 2024, Nubank, Brazil’s largest digital bank, partnered with Lightspark to roll out Lightning-based payments for 100 million customers.
Now, SoFi takes the lead in the U.S., setting a precedent for how banks can leverage blockchain and Bitcoin Lightning to disrupt the $740B remittance industry.
Conclusion
By integrating the Bitcoin Lightning Network and Universal Money Address, SoFi positions itself as a pioneer in U.S. digital banking and a strong competitor in the fast-growing remittance market.
This new service promises faster, cheaper, and more transparent cross-border transfers, redefining how millions of users send money internationally.
Disclaimer: The content above reflects the author’s personal views and does not represent any official position of Cobic News. The information provided is for informational purposes only and should not be considered as investment advice from Cobic News.