SoFi Becomes First US Bank to Use Bitcoin Lightning for Remittances

SoFi Technologies will launch a new service that allows members to send money abroad using the Bitcoin Lightning Network and Universal Money Address (UMA). This makes SoFi the first US bank to use Bitcoin Lightning for international transfers. The service will begin in Mexico and expand to other countries. Members can send money directly from the SoFi app, with costs below the US national average for international transfers. The process involves converting US dollars to Bitcoin, using Bitcoin Lightning to transfer funds across borders, and converting the money back into the local currency. SoFi has 11.7 million members and enters the competitive international money transfer market valued at $740.5 billion in 2024.

SoFi Technologies (SOFI) is set to revolutionize the international money transfer landscape by introducing a service that leverages the Bitcoin Lightning Network. The financial technology company plans to launch this innovative remittance solution by the end of this year, making it the first U.S. bank to utilize the Bitcoin Lightning Network for cross-border transactions. This service will be accessible directly through the SoFi app, initially targeting Mexico and expanding to other countries in the future.

The new service will convert U.S. dollars to Bitcoin, utilize the Bitcoin Lightning Network for fast and low-cost transfers, and then convert the funds back into the local currency for the recipient. This process aims to significantly reduce the fees and transaction times associated with traditional international money transfers, positioning SoFi as a leader in digital payments.

The partnership with Lightspark, a Bitcoin Lightning project led by former Facebook blockchain lead David Marcus, will provide the Universal Money Address (UMA) protocol to facilitate seamless transactions across the open Lightning BTC payments network. This technology will enable SoFi to offer faster, more inclusive access to international money transfers, addressing longstanding pain points in the remittance industry.

The launch of this service comes at a critical time as demand for low-cost, real-time cross-border transfers continues to grow. SoFi's entry into this competitive market, valued at $740.5 billion in 2024, is expected to drive user growth, boost engagement, and strengthen its competitive moat in financial services. The ability to sidestep new remittance taxes under Section 4475 also provides a regulatory edge over traditional rivals.

While some analysts, such as William Blair's senior analyst Andrew Jeffrey, remain bullish on SoFi shares, with estimates translating to a $30 share price by 2026, others on Wall Street have a more cautious stance, with a consensus rating of "Hold" and a mean target of roughly $19 [1].

SoFi's reentry into the crypto sector, following a hiatus in 2023, signals a strategic move to capitalize on the growing interest in blockchain technology for financial services. The integration of Lightspark's UMA technology exemplifies SoFi's commitment to innovation and its aim to disrupt traditional banking models.

References

[1] https://finance.yahoo.com/news/sofi-launches-international-money-transfer-181609863.html
[2] https://www.tradingview.com/news/the_block:8b81b1427094b:0-sofi-taps-lightspark-as-it-looks-to-use-bitcoin-lightning-for-an-international-money-transfer-service/
[3] https://www.coindesk.com/business/2025/08/19/sofi-taps-bitcoin-lightning-network-for-global-remittances-with-lightspark
[4] https://finance.yahoo.com/news/sofi-taps-bitcoin-lightning-network-145323762.html
[5] https://coinpaprika.com/news/sofi-partners-with-lightspark-to-power-blockchain-remittances/