SoFi to Offer International Remittances via Bitcoin Lightning Network

SoFi Technologies will launch international remittance services using the Bitcoin Lightning Network later this year. The partnership with Lightspark will enable real-time cross-border money transfers through the Universal Money Address system. SoFi halted crypto services in 2023 during its transition to becoming a national bank, but this move represents a significant step in its crypto re-entry strategy.

SoFi Technologies (SOFI) is set to revolutionize international money transfers by introducing a new service powered by the Bitcoin Lightning Network. The fintech giant has partnered with Lightspark to leverage the Universal Money Address (UMA) system for real-time cross-border payments. This move is part of SoFi's strategy to re-enter the cryptocurrency space following its transition to becoming a national bank.

The new service, expected to launch later this year, will initially be available in Mexico before expanding to additional countries. Users will be able to send U.S. dollars through the SoFi app, with recipients receiving local currency deposits abroad. The service will operate 24/7 directly within the SoFi app, eliminating the need for third-party services [1].

How the service works
SoFi's international money transfer service will convert U.S. dollars to Bitcoin in real-time and route funds across borders using the Bitcoin Lightning Network. The funds will then be instantly converted back into the recipient's local currency and deposited into their bank account. Lightspark's UMA provides access to a global payment network designed for speed and scale [2].

Cost savings and regulatory advantages
The new service aims to be among the lowest-cost international money transfer platforms, with total costs below the global average of 6.49% as reported by the World Bank [3]. Additionally, digital currency transfers, including those made via Bitcoin, are exempt from the 1% remittance tax enacted by Section 4475 of the One Big Beautiful Bill Act [2].

Industry adoption and customer experience
Lightspark CEO David Marcus highlighted the benefits of using Bitcoin's open payments network for international money movement. "Digital banks are embracing UMA because it’s fast, cheap, and secure, and it uses the only open payments network that exists, Bitcoin," he said [2]. SoFi members can now join a waitlist for early access, with all fees and exchange rates displayed before completing a transaction.

This move represents a significant step in SoFi's crypto re-entry strategy. By integrating blockchain-based remittance capabilities directly into its core banking app, SoFi is poised to offer a faster, more inclusive, and less expensive alternative to traditional remittance channels [3].

References:
[1] https://www.businesswire.com/news/home/20250819638580/en/SoFi-Partners-with-Lightspark-to-Power-Blockchain-Enabled-International-Money-Transfers
[2] https://bitbo.io/news/sofi-bitcoin-remittance/
[3] https://www.coindesk.com/business/2025/08/19/sofi-taps-bitcoin-lightning-network-for-global-remittances-with-lightspark