SoFi Bank will use Bitcoin’s Lightning Network to launch low-cost international money transfers, beginning with Mexico later this year.
Summary
- SoFi Bank will leverage Bitcoin’s Lightning Network to launch a global remittance service.
- The service uses Lightspark’s Universal Money Address, which lets users send dollars abroad with real-time Bitcoin conversion.
As part of its partnership with payments infrastructure provider Lightspark, announced on Aug. 19, SoFi Bank will offer near-instant cross-border payments that convert U.S. dollars to Bitcoin in real-time and transmit them via Lightning rails.
The funds are then automatically converted into the recipient’s local currency and deposited into their bank account. This rollout will mark the first time a U.S. bank integrates blockchain-based remittance capabilities directly into its core banking app.
The new feature will let SoFi’s 11.7 million members send money abroad at a fraction of the cost of traditional remittance channels. All transactions will take place within the SoFi app, with no need for third-party services.
The company says it expects fees to fall below the national average and that all exchange rates and costs will be disclosed upfront to ensure transparency.
SoFi CEO Anthony Noto said the new service aims to make a “meaningful improvement” for customers who regularly send money abroad.
“By embedding this directly into SoFi’s app, we’re unlocking the value of blockchain technology to give members faster, smarter, and more inclusive access to their money,” he said.
SoFi Bank and the Bitcoin Lightning Partner
The technical core of SoFi’s new service is Lightspark’s Universal Money Address (UMA), which allows users to send and receive funds using simple, email-like identifiers. Behind the scenes, UMA routes payments through Bitcoin’s Lightning Network—a Layer 2 protocol designed to handle small transactions rapidly and cheaply by operating off-chain.
When a user initiates a transfer, the system converts U.S. dollars into Bitcoin in real-time, sends the BTC through Lightning channels, and converts it again into the destination country’s currency. Funds land directly in the recipient’s bank account without requiring them to hold or manage crypto.
At launch, the feature will be available for transfers to Mexico, with more countries planned in a phased expansion. SoFi says the phased rollout ensures consistency and security from day one.
SoFi’s return to the digital asset sector
SoFi is stepping back into the crypto space, two years after regulatory headwinds forced it to walk away.
The digital bank backed away from crypto in 2023, not by choice, but under mounting pressure from regulators that left little room to operate within existing rules. By November, customers were asked to transfer or liquidate their holdings, and services shut down shortly after.
However, a change in tone from U.S. regulators opened the door to a comeback. In April 2025, CEO Anthony Noto confirmed SoFi’s renewed interest in crypto and said the company planned to integrate blockchain solutions across lending, investing, payments, and protection products.
As previously reported by crypto.news, the bank restarted spot cryptocurrency trading on its platform in June.
Source: https://crypto.news/sofi-bank-taps-bitcoin-lightning-for-cross-border-payments-via-lightspark/
