SoFi to Introduce Real-Time Cross-Border Bitcoin Conversions Through Blockchain Technology

SoFi is launching a blockchain-based international money transfer service that will convert US dollars to Bitcoin in real-time and transfer funds across borders, instantly converting them into local currency and delivering them to the recipient's bank account. The service is expected to roll out to the SoFi app later this year. CEO Anthony Noto sees potential uses for the technology beyond money transfers.

San Francisco, CA - SoFi Technologies (NASDAQ: SOFI) has announced its upcoming international money transfer service, set to revolutionize cross-border payments by leveraging blockchain technology. The service will enable members to send funds abroad directly from the SoFi app, offering lower fees and faster delivery compared to traditional remittance service providers. This innovative move positions SoFi as one of the first U.S. banks to offer a blockchain-powered remittances service [1].

The new service, powered by Lightspark's Universal Money Address (UMA) protocol, will convert U.S. dollars to Bitcoin in real-time and route funds across borders using the Bitcoin Lightning Network. Funds will then be instantly converted back into the recipient's local currency and delivered directly to their bank account [1]. Lightspark, led by former Facebook blockchain lead David Marcus, will provide the technology to enable seamless transactions across the open Lightning BTC payments network [2].

Anthony Noto, CEO of SoFi, highlighted the convenience and cost savings for members, stating, "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" [1].

The service is expected to roll out later this year, initially in Mexico, with more countries to follow. SoFi's international transfer service will be available 24/7 directly on the SoFi app, without the need for third-party apps. The total costs will be below the current national average, with exchange rates and fees displayed upfront for transparency [1].

SoFi's partnership with Lightspark marks a significant step forward in the adoption of blockchain technology in financial services. This move not only addresses the pain points of traditional remittance services but also positions SoFi to capture a significant share of the global remittance market, estimated to reach $40B annually [3].

References:
[1] https://www.businesswire.com/news/home/20250819638580/en/SoFi-Partners-with-Lightspark-to-Power-Blockchain-Enabled-International-Money-Transfers
[2] https://www.tradingview.com/news/the_block:8b81b1427094b:0-sofi-taps-lightspark-as-it-looks-to-use-bitcoin-lightning-for-an-international-money-transfer-service/
[3] https://www.ainvest.com/news/sofi-bitcoin-powered-remittance-expansion-game-changer-fintech-disruption-shareholder-2508/