Bitcoin News Today: SoFi Integrates Bitcoin Lightning for Cross-Border Remittances via Lightspark

SoFi Technologies Inc. has become the first U.S. bank to integrate the Bitcoin Lightning Network for cross-border remittances, partnering with blockchain infrastructure firm Lightspark to offer the service. The initiative, launching in late 2025, will initially support transactions to Mexico and allows customers to convert U.S. dollars to Bitcoin in real-time before sending funds via the Lightning Network. Recipients will then receive the transferred amount directly into their local bank accounts, bypassing traditional international payment systems [1]. The service utilizes Lightspark’s Universal Money Address (UMA) system, which allows users to send and receive payments using simple, email-like addresses such as user@sofi.com, eliminating the need for complex blockchain addresses [2].

The integration of the Lightning Network—a second-layer protocol that enables fast, low-cost Bitcoin transactions—marks a major shift in how traditional financial institutions can incorporate cryptocurrency infrastructure into mainstream banking. By leveraging this technology, SoFi can facilitate cross-border transactions with near-instant settlement times and significantly lower fees compared to traditional systems like SWIFT or Western Union [3]. The service is also available 24/7, offering a more convenient option for users who frequently send money abroad, particularly in regions with limited access to traditional banking services [4].

SoFi CEO Anthony Noto emphasized the transparency and user-friendliness of the service, noting that customers will be able to view fees and exchange rates before completing a transaction. This feature addresses common criticisms of traditional remittance services, which often impose high fees and unclear processing times [5]. Lightspark, the co-founder of which includes former PayPal executive David Marcus, has already demonstrated traction in the Bitcoin infrastructure space, having supported Coinbase’s Lightning Network integration in 2024 [6].

The move aligns with a growing trend of financial institutions exploring Bitcoin-based remittance solutions. Earlier this year, Brazil’s Nubank partnered with Lightspark to offer Bitcoin Lightning payments to its 100 million users, indicating broader adoption of the technology in digital payments [7]. SoFi’s service is currently experiencing strong demand, as evidenced by the presence of a significant waitlist among customers eager to access the new offering [8].

By embracing the Lightning Network and UMA technology, SoFi is positioning itself as a leader in financial innovation within the U.S. banking sector. The initiative not only enhances the speed and cost-efficiency of international remittances but also signals a potential shift in how U.S. banks approach global payments in the future [9].

Sources:

[1] Cointelegraph, https://cointelegraph.com/news/sofi-set-first-us-bank-leveraging-bitcoin-lightning

[2] CoinDesk, https://www.coindesk.com/business/2025/08/19/sofi-taps-bitcoin-lightning-network-for-global-remittances-with-lightspark

[3] AInvest, https://www.ainvest.com/news/sofi-integrates-bitcoin-lightning-instant-cost-global-transfers-2508/

[4] CoinCentral, https://coincentral.com/sofi-technologies-sofi-stock-slips-as-it-unveils-bitcoin-backed-global-payments-via-lightspark/

[5] Investing.com, https://www.investing.com/news/company-news/sofi-to-launch-blockchainpowered-international-money-transfers-93CH-4200184

[6] PYMNTS.com, https://www.pymnts.com/blockchain/2025/sofi-and-lightspark-team-on-blockchain-powered-remittances/

[7] Bitget, https://www.bitget.com/news/detail/12560604919707

[8] CoinMarketCap, https://coinmarketcap.com/community/articles/68a5889b6f6d3f0f79f5b5c0/