Digital bank SoFi Technologies is set to become the first US bank to leverage the Bitcoin network and Universal Money Address, allowing Americans, Mexicans and others to send money through the Lightning Network.
SoFi has partnered with Bitcoin (BTC) payments infrastructure Lightspark to launch its blockchain-powered international money transfer service, which will go live later this year, starting in Mexico, SoFi said in an announcement on Tuesday.
“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 X.
According to Noto, users will be able to send money internationally directly from the SoFi app. It competes in a crowded global remittance market, which was valued at $740.5 billion in 2024.
SoFi unveils how the Bitcoin UMA solution will work
SoFi’s new, UMA-powered international money transfer service will allow customers to convert US dollars into Bitcoin in real-time and route the funds across borders via the Bitcoin Lightning network, where funds are delivered directly to the recipient’s bank account in their country’s currency.
Lightspark’s UMA allows users to transfer money with an email-like address while leveraging Bitcoin Lightning. The firm was founded in 2022 by David Marcus, former president of PayPal.
SoFi said costs will be “below the current national average” and that exchange rates and fees will be shown to members before hitting send to “ensure full transparency.”
The service will be available at all times of the day, every day, for SoFi’s 11.7 million members.
Coinbase integrated Lightspark’s Bitcoin infrastructure last year
It comes a year after Coinbase rolled out support for Lightspark’s Bitcoin Lightning solution to enable instant, low-cost transfers in April 2024.
It saw strong adoption across the first 12 months, with 15% of Bitcoin transactions on Coinbase moving on Lightning rails via Lightspark, the Bitcoin infrastructure firm said in April.
Related: Thailand to launch crypto payment sandbox for tourists
Brazilian bank slow to roll out Lightspark’s Bitcoin solutions
Brazilian neobank Nubank partnered with Lightspark in June 2024 to offer Bitcoin Lightning payments to its 100 million customers in Latin America.
However, Nubank hasn’t confirmed that the Bitcoin-powered payments have been integrated for full use yet.
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Source: https://cointelegraph.com/news/sofi-set-first-us-bank-leveraging-bitcoin-lightning?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
