Our Terms & Conditions | Our Privacy Policy
SoFi Technologies will soon let its members send money abroad using the Bitcoin network and a system called Universal Money Address (UMA). The move makes SoFi the first US bank to use the Bitcoin Lightning Network for international transfers.
The service will begin in Mexico and expand to other countries afterward. SoFi said this gradual rollout is meant to keep transfers fast, secure, and consistent for members from the start.
“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,” SoFi CEO Anthony Noto said on social media.
How the transfers will work?
The new service is expected to go live later this year. Members will be able to send money directly from the SoFi app at any time, without using a third-party app. Costs are expected to be below the US national average for international transfers, and both exchange rates and fees will be shown before confirming a payment.
Here’s what happens in the background:
- US dollars are converted into Bitcoin in real time.
- Funds move in borders through the Bitcoin Lightning Network.
- The money is then converted back into the local currency and sent to the recipient’s bank account.
The process is powered by Lightspark, a company that runs a global network connecting banks and financial platforms. It was founded in 2022 by David Marcus, the former PayPal president. UMA gives users a simple email-like address for transfers, while Bitcoin Lightning handles the payment rails.
SoFi Bank in the global remittance market
The international money transfer market is large and competitive – valued at $740.5 billion in 2024. The new service from SoFi bank enters this space promising lower costs and constant availability for its 11.7 million members.
Other financial firms have already started adopting Lightspark’s infrastructure. Coinbase integrated the Bitcoin Lightning solution in April 2024, and said that in a year, 15% of Bitcoin transactions on its platform were running through Lightning.
In Latin America, Brazilian neobank Nubank partnered with Lightspark in June 2024 to bring Lightning payments to its 100 million customers, though it has yet to confirm a full rollout.
(Photo by DrawKit Illustrations)
See also: The GENIUS Act: Does America’s new stablecoin framework create more problems than it solves?
Want to learn more about blockchain from industry leaders? Check out Blockchain Expo taking place in Amsterdam, California and London.
Explore other upcoming enterprise technology events and webinars powered by TechForge here.
Images are for reference only.Images and contents gathered automatic from google or 3rd party sources.All rights on the images and contents are with their legal original owners.
Aggregated From –
Comments are closed.