Bitcoin News Today: SoFi Integrates Bitcoin Lightning for International Transfers

SoFi Technologies Inc. has become the first U.S. financial institution to integrate Bitcoin’s Lightning Network for international money transfers, marking a significant step in blockchain adoption within the banking sector. The Nasdaq-listed fintech firm has partnered with Lightspark, a payment infrastructure company, to offer a blockchain-based remittance service that is set to launch later in 2025. The service will be embedded within the SoFi app, allowing users to send money internationally without relying on third-party platforms [1].

The solution utilizes the Universal Money Address (UMA) technology, enabling users to send U.S. dollars directly from the SoFi app. The funds are then converted in real time to Bitcoin and transferred via the Lightning Network. Upon reaching the recipient, the Bitcoin is converted back to the local currency and deposited into the recipient’s bank account [2]. This approach aims to streamline cross-border transactions, offering a faster and more cost-effective alternative to traditional remittance services [3].

The Lightning Network, a second-layer protocol built on top of Bitcoin, facilitates near-instant and low-cost transactions by routing payments through off-chain channels. By leveraging this infrastructure, SoFi aims to address key pain points in cross-border transfers, including high fees and delays [4]. Lightspark CEO David Marcus, a former PayPal president, noted that the partnership reflects growing demand for innovative payment solutions and highlighted a significant waitlist as evidence of user interest [5].

Initially, the service will be available for transfers to Mexico, with plans to expand to additional countries in the near future. SoFi also intends to integrate the remittance service with its Checking & Savings product later in the year, further enhancing the utility of its financial ecosystem [6]. Anthony Noto, CEO of SoFi, emphasized that the feature is designed to improve the financial experience of users who regularly send money overseas, particularly in high-impact corridors like the U.S.-Mexico route [7].

The move positions SoFi at the forefront of blockchain adoption in the financial sector, aligning with broader trends as institutional players increasingly explore decentralized solutions for cross-border transactions. By embedding blockchain technology directly into its mobile app, SoFi aims to simplify access to international money transfers for its members while maintaining transparency around exchange rates and fees [8]. This strategy could set a precedent for traditional financial institutions seeking to innovate in the remittance space.

The partnership between SoFi and Lightspark also reflects a broader shift in how fintech firms are leveraging emerging technologies to offer more inclusive financial services. As the global remittance market continues to expand—driven by increasing cross-border digital transactions and demand for faster, cheaper alternatives—SoFi’s integration of Bitcoin’s Lightning Network may serve as a blueprint for other financial institutions looking to innovate [9].

Lightspark, a key enabler of the initiative, provides enterprise infrastructure powered by the Lightning Network. Its UMA technology allows users to send and receive money using standard email addresses or phone numbers, eliminating the need for traditional cryptocurrency wallet addresses [10]. This user-friendly approach is expected to lower the barrier to entry for individuals unfamiliar with blockchain technology.

SoFi’s new service underscores the potential for blockchain to disrupt traditional financial infrastructure. With the company leading the charge in integrating Lightning Network-based remittances in the U.S., the move could catalyze wider adoption among banks and financial platforms. The initiative also highlights the evolving role of Bitcoin beyond speculative investment, positioning it as a practical tool for everyday financial activities [1].

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[1] Yahoo Finance (https://finance.yahoo.com/news/sofi-teams-lightspark-blockchain-remittances-111644598.html)

[2] unchainedcrypto.com (https://unchainedcrypto.com/sofi-launches-lightning-network-remittances/)

[3] Cointelegraph (https://cointelegraph.com/news/sofi-set-first-us-bank-leveraging-bitcoin-lightning)

[4] Mitrade (https://www.mitrade.com/insights/news/live-news/article-3-1055171-20250820)

[5] CoinMarketCap (https://coinmarketcap.com/academy/article/sofi-becomes-first-us-bank-to-launch-bitcoin-lightning-transfers)

[6] Brave New Coin (https://bravenewcoin.com/partner/us-bank-integrates-bitcoin-lightning-best-wallet-token)

[7] Holder.io (https://holder.io/news/sofi-lightspark-bitcoin-remittances-2/)

[8] AInvest (https://www.ainvest.com/news/sofi-bank-launches-blockchain-powered-international-money-transfer-service-2508/)

[9] The Currency analytics (https://thecurrencyanalytics.com/bitcoin/sofi-becomes-first-u-s-bank-to-embrace-bitcoin-lightning-and-uma-191519)

[10] X · _TOBTC (https://x.com/_TOBTC/status/1958147****15535078)