SoFi Integrates Bitcoin Lightning Network To Push Digital Payments

SoFi Technologies is stepping into the global remittance market by becoming the first bank in America to use the Bitcoin network for international money transfers. Through a partnership with Bitcoin payments firm Lightspark, SoFi will soon enable its members to send money across borders. 

The service will use the Universal Money Address (UMA) and the Lightning Network. This initiative is set to launch later this year, starting with Mexico.

SoFi Launches Faster, Cheaper International Transfers

For millions of Americans and Mexicans, sending money to family members is a regular part of life. Today, sending money abroad is often slow and expensive. SoFi’s new service plans to fix this with faster, cheaper transfers. Users will be able to send money directly from the SoFi app. 

Behind the scenes, dollars will be converted into Bitcoin (BTC) in real time, moved across the Lightning Network, and then delivered to the recipient’s bank account in local currency. In a recent statement, SoFi CEO Anthony Noto stated that this new service will give members a faster and more affordable way to send money internationally. It is poised to improve their everyday financial lives.

SoFi Taps Bitcoin Lightning and UMA for Global Payments 

At the center of this new system is Lightspark’s Universal Money Address (UMA). It works like an email address, making payments simple to send and receive. 

Founded in 2022 by PayPal president David Marcus, Lightspark has quickly emerged as a major player in building Bitcoin infrastructure for global transactions. Furthermore, SoFi’s new system will also run on the Bitcoin Lightning Network, a layer-2 protocol designed for instant and low-cost Bitcoin transfers worldwide. 

This move by SoFi adds to the growing adoption of Lightspark’s Lightning solution. In April 2024, Coinbase integrated the layer-2 solution for instant Bitcoin payments, and now 15% of its Bitcoin transactions run on Lightning. 

In June 2024, Brazilian neobank Nubank also partnered with Lightspark to bring Lightning payments to its 100 million customers in Latin America. However, the full rollout of this service has not yet been confirmed. In May, Jack Dorsey’s Block even announced plans to enable Bitcoin payments on Square using the Lightning network. 

Entering the Global Remittance Market with Blockchain Payments

SoFi is moving into the $740.5 billion global remittance market, where traditional providers charge high fees and transfers are often slow. SoFi believes its blockchain system can change this by offering faster, cheaper, more transparent, and easier-to-access payments. 

Members will also see exchange rates and fees upfront, with costs kept below the national average, making it more convenient than regular bank transfers. At the same time, Ripple Labs is looking to compete with its RLUSD stablecoin, which aims to solve cross-border payment problems using blockchain technology.