TL;DR
- SoFi has teamed up with Lightspark to introduce instant international transfers using Bitcoin’s Lightning Network and UMA technology.
- The service will first roll out in Mexico, offering faster and cheaper alternatives to traditional remittances.
- This marks SoFi’s most ambitious blockchain initiative yet, positioning the digital bank as a bridge between regulated finance and decentralized payment rails.
SoFi is moving deeper into blockchain-powered services by announcing a strategic partnership with Lightspark, a company focused on Bitcoin infrastructure led by former PayPal president David Marcus. The collaboration aims to integrate Bitcoin’s Lightning Network and the Universal Money Address (UMA) into SoFi’s mobile app, enabling users to send money abroad with speed, clarity, and lower fees compared to legacy systems.
Expanding Blockchain Use In Banking
The new service will convert U.S. dollars into Bitcoin, transmit them instantly across the Lightning Network, and then reconvert them into the recipient’s local currency before landing in their account. Mexico will be the first market to access this functionality, a decision that reflects the large remittance flows between the U.S. and Latin America.
SoFi members will no longer need to depend on money transfer operators that typically charge high fees and take days to settle. Instead, the integration promises transparency in rates and around-the-clock availability. This initiative goes beyond remittances, as SoFi has also hinted at stablecoin issuance, staking infrastructure, and crypto-backed loans as part of its broader digital asset roadmap.
Faster Transfers And Lower Costs
The potential to reduce costs is significant. Traditional remittance fees average about 6% of the transaction, according to World Bank data, while transfers through SoFi’s blockchain rails are expected to be much cheaper. For many families, that difference translates directly into more money reaching loved ones.
Anthony Noto, SoFi’s CEO, highlighted that cross-border payments are a frequent need among its members and that embedding Lightning-powered transfers into the app gives customers “a smarter and more inclusive way” to manage their funds. A waitlist for early access has already opened, suggesting strong demand from frequent remittance users.
Lightspark, launched in 2022, has been promoting UMA as a global money standard that works with the simplicity of email. Marcus emphasized that Bitcoin is the only open, scalable payments network capable of supporting this vision. The SoFi partnership makes the bank the first in the U.S. to integrate Lightning and UMA at scale, positioning it ahead of both fintech rivals and traditional banking giants still experimenting with blockchain pilots.
