Bitcoin News Today: SoFi’s Bitcoin Remittances Reshape Global Money Transfers

SoFi Technologies, a U.S.-based fintech firm, is expanding its digital offerings by introducing a new international remittance service powered by the Bitcoin Lightning Network. The service, which will be available through a partnership with Lightspark, is set to launch later in 2025 and will allow users to send U.S. dollars through the SoFi app, with recipients receiving the equivalent in local currency in their home countries. This development positions SoFi as one of the first U.S. banks to integrate blockchain-based payments for cross-border transfers. The integration leverages Lightspark’s Universal Money Address (UMA), a protocol that operates on the Lightning Network, enabling near-instant and low-cost transactions [1].

SoFi’s remittance service aims to undercut traditional remittance providers by offering a faster, more transparent, and cost-effective alternative. The firm states that its fees will be below the current global average of 6.49%, as reported by the World Bank [3]. Transactions will be processed in seconds and will display upfront exchange rates and fees, addressing common issues faced by users of traditional remittance services. This transparency is intended to build trust and provide a more seamless user experience. The service is also exempt from the new 1% remittance tax under Section 4475 of the One Big Beautiful Bill Act, which applies to cash-based transfers, giving SoFi a regulatory advantage over traditional providers [3].

The initial rollout will focus on transfers to Mexico, with further international expansion planned for the near future. The phased approach allows SoFi to ensure the stability and security of the service as it scales to meet growing demand. The remittance feature will be integrated into SoFi Checking & Savings, a product offered through SoFi Bank, N.A., and will be available 24/7. This aligns with SoFi’s broader strategy to compete in the global remittance market, which was valued at $740.5 billion in 2024 [2]. The service is expected to appeal to SoFi’s 11.7 million members who regularly send money overseas, offering a convenient and cost-effective solution for cross-border financial needs.

The partnership with Lightspark is part of a broader trend in the fintech industry to leverage blockchain technology for financial services. This move follows SoFi’s reentry into the cryptocurrency space after a hiatus in 2023 during its transition to a national bank. The company has previously announced plans to allow users to invest in crypto, indicating a long-term commitment to integrating digital assets into its financial ecosystem [1]. Lightspark, founded by David Marcus, of PayPal, has already seen strong adoption in the cryptocurrency space, including with platforms like Coinbase [2]. The collaboration with SoFi represents a significant real-world deployment of the Lightning Network infrastructure, potentially accelerating the adoption of Bitcoin as a medium for everyday transactions.

Analysts highlight the strategic implications of SoFi’s new service for its competitive positioning in the financial sector. By offering blockchain-powered remittances, SoFi strengthens its reputation as an innovator in digital banking and positions itself to capture a growing segment of the global remittance market. The service also supports SoFi’s efforts to differentiate itself from traditional banks and remittance providers by offering a more modern, user-friendly, and transparent alternative. As the market for low-cost cross-border payments continues to expand, this innovation could drive user growth, enhance customer engagement, and reinforce SoFi’s leadership in digital financial services [4].

Source:

[1] Bitcoin Lightning News: SoFi Partners With Lightspark for ... (https://www.coindesk.com/business/2025/08/19/sofi-taps-bitcoin-lightning-network-for-global-remittances-with-lightspark)

[2] SoFi To Become First US Bank To Integrate Bitcoin Lightning (https://cointelegraph.com/news/sofi-set-first-us-bank-leveraging-bitcoin-lightning)

[3] SoFi Launches Bitcoin Lightning Network Remittance Service (https://bitbo.io/news/sofi-bitcoin-remittance/)

[4] As SoFi Launches International Money Transfer Services ... (https://www.barchart.com/story/news/34254648/as-sofi-launches-international-money-transfer-services-how-should-you-play-sofi-stock)