SoFi Technologies, a digital banking platform, will be the first US bank to use the Bitcoin Lightning Network and Universal Money Address (UMA) together. This will let people send money internationally quickly and cheaply. The new service will start in the US and Mexico later this year and then spread to other countries. This will change how Americans send money across borders in a big way.
SoFi’s international transfers that use blockchain
SoFi’s groundbreaking project is made possible by a strategic partnership with Lightspark, a company that builds Bitcoin infrastructure. The UMA solution will let SoFi users send money around the world from the SoFi app. It will convert US dollars to Bitcoin in real time and send the money through the Lightning Network. When the transaction reaches the recipient’s destination, the money is automatically delivered as local currency and deposited directly into the recipient’s bank account.
Lightspark’s team, led by former PayPal president David Marcus, created the Universal Money Address. This lets users send money to an email-like address, making it simple and easy to use while taking advantage of Bitcoin Lightning’s speed and low cost. Anthony Noto, the CEO of SoFi, said that for members who rely on international transfers, “the ability to quickly transfer money at low cost isn’t just a convenience; it’s a big improvement in their daily financial lives.”
Competitive Landscape and Consumer Benefits
The global remittance market will be worth $740.5 billion in 2024, and SoFi’s blockchain-based service is ready to shake up traditional payment providers by offering instant transfers 24/7 at rates lower than the national average. For full transparency, we will tell you about exchange rates and fees up front. The service, which is currently only available to SoFi’s 11.7 million members, is expected to add support for more corridors besides Mexico.
SoFi is getting into blockchain transfers after Coinbase successfully added Lightspark’s Lightning infrastructure in 2024. This new technology already handles 15% of Bitcoin transactions on Coinbase’s platform.
SoFi is setting a new standard for cross-border banking by using the Bitcoin Lightning Network and UMA. This combines the trust and reach of a major US bank with the transparency and efficiency of blockchain. The change promises to lower costs, speed things up, and give millions of people who need international remittance services more options.
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