SoFi Becomes First US Bank to Utilize Bitcoin Lightning Network and Universal Money Address for International Transfers.

SoFi Technologies has launched the first U.S. bank to use the Bitcoin Lightning Network and Universal Money Address for sending money overseas, partnering with Lightspark to make international transfers quicker, cheaper, and easier for everyday people. This innovation marks a fresh chapter in remittance innovation, allowing for faster and more cost-effective international transactions.

SoFi Technologies, a digital bank, has made a groundbreaking move by becoming the first U.S. bank to leverage the Bitcoin Lightning Network and Universal Money Address (UMA) for international money transfers. This innovative partnership with Lightspark aims to revolutionize the $740 billion global remittance market by offering faster, cheaper, and more convenient international transactions [1].

The new service, set to launch later this year, will enable SoFi members to send U.S. dollars through the SoFi app, with recipients receiving local currency deposits abroad. This is achieved by converting USD to Bitcoin in real-time and routing the funds via the Bitcoin Lightning Network, using Lightspark's UMA [2].

Lightspark's UMA allows users to transfer money with an email-like address while leveraging the Bitcoin Lightning Network. This technology, founded by David Marcus, former president of PayPal, enables instant and low-cost cross-border payments, addressing longstanding pain points in traditional remittance services [3].

SoFi's CEO, Anthony Noto, emphasized the significance of this innovation for its members, stating, "For many SoFi members who regularly send money to loved ones internationally, the ability to quickly transfer money at low cost isn’t just a convenience, it’s a meaningful improvement to their everyday financial lives" [1].

The integration of Lightspark's UMA and Bitcoin Lightning Network is expected to reduce costs and settlement times significantly. Lightspark's technology simplifies routing over Lightning, cutting on-chain settlement steps and lowering variable costs compared to legacy remittance rails [3].

SoFi's move into crypto remittances comes after a hiatus in 2023 during its transition to a national bank. This reentry into crypto marks a strategic shift to modernize its services and compete in the rapidly evolving financial landscape [2].

The partnership with Lightspark follows a successful adoption of Lightspark's Bitcoin Lightning solution by Coinbase in 2024, which saw 15% of Bitcoin transactions on Coinbase moving on Lightning rails within the first year [3].

SoFi's new remittance service is set to launch initially in the U.S. to Mexico corridor, with plans to expand to more countries over time. This innovation is poised to bring the benefits of blockchain technology to everyday financial transactions, making international remittances more efficient and accessible [1].

References:
[1] https://cointelegraph.com/news/sofi-set-first-us-bank-leveraging-bitcoin-lightning
[2] https://www.coindesk.com/business/2025/08/19/sofi-taps-bitcoin-lightning-network-for-global-remittances-with-lightspark
[3] https://en.coinotag.com/sofi-could-become-first-us-bank-to-use-bitcoin-lightning-partnering-with-lightspark-for-remittance-service/