Bitcoin News Today: SoFi to Launch Bitcoin-Powered Remittances via Lightning Network and UMA

SoFi Technologies, a leading U.S. digital bank, is set to become the first American bank to integrate the Bitcoin Lightning Network and Lightspark’s Universal Money Address (UMA), enabling near-instant, low-cost international money transfers for its customers. The new service will allow users to convert U.S. dollars into Bitcoin and send funds across borders via the Lightning Network, with the final amount delivered directly into the recipient’s bank account in their local currency. The feature is expected to go live later this year, starting with transactions between the U.S. and Mexico, with more countries to follow [1].

According to SoFi CEO Anthony Noto, the service is designed to improve the everyday financial experience of members who frequently send money abroad, offering speed and cost-efficiency that traditional remittance platforms often fail to match. The company emphasized that the process will be fully transparent, with exchange rates and fees displayed before sending, and the service will be available 24/7 for its 11.7 million members [2]. Lightspark, the Bitcoin infrastructure firm behind the UMA technology, was co-founded by David Marcus, formerly the president of PayPal, and has already been adopted by platforms such as Coinbase for similar purposes [3].

The integration of Lightning Network and UMA into SoFi’s app marks a significant step in the mainstream adoption of blockchain-based solutions for financial services. By eliminating the need for recipients to have specific wallet addresses or traditional bank accounts, SoFi aims to simplify and democratize cross-border transactions, potentially challenging existing players in the $740.5 billion global remittance market [4]. The firm has also introduced new investment features that allow members to buy and hold cryptocurrencies like Bitcoin and Ethereum, further expanding its digital offerings [5].

This development is part of a broader trend of financial institutions exploring blockchain technology to enhance their digital banking platforms. SoFi’s collaboration with Lightspark demonstrates how established fintech companies are seeking to leverage decentralized infrastructure to meet the demands of a digitally connected, global user base [6]. The move also aligns with a growing interest in Bitcoin’s Lightning Network as a scalable, low-cost solution for everyday transactions, particularly in international remittances.

SoFi’s initiative is expected to set a precedent for other financial institutions considering similar integrations. However, the success of the new service will depend on factors such as regulatory acceptance, user adoption, and the continued growth of the Lightning Network as a reliable payment layer for Bitcoin [7]. By integrating UMA and Lightning into its platform, SoFi is not only expanding its product suite but also positioning itself at the intersection of traditional finance and emerging blockchain technologies [8].

Sources:

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

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

[4] Morningstar - https://www.morningstar.com/news/business-wire/20250819638580/sofi-partners-with-lightspark-to-power-blockchain-enabled-international-money-transfers

[5] AInvest - https://www.ainvest.com/news/sofi-introduces-global-money-transfer-service-fees-faster-delivery-2508-67/

[6] Yahoo - https://finance.yahoo.com/news/sofi-taps-bitcoin-lightning-network-145323762.html

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

[8] neobanque.ch - https://neobanque.ch/blog/sofi-launches-crypto-powered-global-transfers-investment-platform/