Cross-border payments will now be facilitated through the Bitcoin Lightning Network, as announced by SoFi Technologies.
In a groundbreaking move, online banking platform SoFi is set to launch an international money transfer service utilising the Bitcoin Lightning Network later this year. The service, which is currently in a waitlist or early access phase, will initially be available for transfers from the U.S. to Mexico, with plans for phased expansion to other countries that see high remittance demand [1][2][5].
The service, integrated directly within the SoFi app, will allow members to send U.S. dollars that are converted in real time into Bitcoin. These funds will then be routed through the Lightning Network for fast, low-cost transfers, and instantly exchanged into the recipient's local currency before being deposited directly into their bank account [1][3][4][5].
Lightspark's Universal Money Address (UMA) technology powers the service, providing a simple email-like identifier for transfers, thereby simplifying the process and reducing errors [1][3][4][5]. This technology, combined with the speed and efficiency of the Lightning Network, promises to deliver instant transfers at competitive costs below the global average for remittance fees [1][2][3][4][5].
SoFi's expansion strategy is cautious and phased, ensuring transfers remain fast, secure, and consistent. Mexico, selected due to its significant remittance volumes, will serve as the launch market, with plans to extend the service to other international destinations thereafter [1][2][3].
This move marks a significant step for SoFi, making it the first U.S. bank to adopt Bitcoin's Lightning Network for international payments. It could potentially push other banks towards blockchain-based solutions for remittances [3][4].
Key figures behind this development include SoFi's CEO, Anthony Noto, who emphasises the importance of blockchain in improving users' financial lives, and David Marcus, the CEO of Lightspark. Marcus is well-known for leading the crypto initiative at Meta and later revealing plans to build a new crypto startup [2].
SoFi has been working on crypto products since 2023, and with the new crypto-friendly regulations, it is launching this service in 2025, as announced earlier [6]. The company plans to offer more crypto services for its users in partnership with Lightspark [7].
Before resuming its crypto services after a 2-year regulatory pause, SoFi ensured it followed new crypto-friendly regulations in the U.S. [8]. The service will be available 24/7 within the SoFi app without the need for external services or third-party applications [9].
It is important to note that this article does not provide financial or investment advice. Readers are encouraged to verify information and consult with a professional before making decisions based on the content.
References:
[1] SoFi Press Release, [link] [2] David Marcus's Twitter Announcement, [link] [3] Coindesk Article, [link] [4] Cointelegraph Article, [link] [5] The Block Crypto Article, [link] [6] SoFi's 2023 Announcement, [link] [7] SoFi's 2025 Announcement, [link] [8] SoFi's Regulatory Compliance Statement, [link] [9] SoFi's App Features, [link]
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