SoFi Partnership with Lightspark Falls Despite Stock Drop

SoFi stock fell despite a partnership with Lightspark to offer an international money transfer service via the Universal Money Address (UMA). The service will launch later this year and offer lower transfer rates and transparency on rates and fees. SoFi CEO Anthony Noto said the service will improve users' everyday financial lives. SOFI stock was down 4.21% as of this writing but is up 50.84% year-to-date and 228.77% over the past 12 months.

SoFi Technologies Inc. (SOFI) stock experienced a decline on Tuesday despite announcing a strategic partnership with Lightspark to offer an international money transfer service. The service, powered by Lightspark's Universal Money Address (UMA) and the Bitcoin Lightning Network, is expected to provide faster and cheaper transfers compared to traditional remittance services [1].

The new service, set to launch later this year, will allow SoFi members to send funds abroad directly through the SoFi app. It will convert U.S. dollars to Bitcoin in real-time and route the funds across borders using the Lightning Network before converting them back to the local currency for delivery to the recipient's bank account [2]. This innovation aims to offer transparency by displaying exchange rates and fees upfront, ensuring that users are fully informed before sending funds [3].

SoFi CEO Anthony Noto highlighted the significance of this service, 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" [3]. The service will initially be available in Mexico, with plans to expand to other countries in the near future [3].

Despite the promising partnership, SoFi stock fell by 4.21% as of this writing, although it remains up 50.84% year-to-date and 228.77% over the past 12 months [1]. Analysts' consensus is to hold the stock, with an average price target of $20.06, representing a potential 14.2% downside [1].

The decline in SoFi stock may be attributed to market sentiment or other factors unrelated to the Lightspark partnership. However, the new international money transfer service could position SoFi as a leader in blockchain-based remittances and attract more users seeking faster and cheaper transfer options.

References:
[1] https://www.tipranks.com/news/sofi-stock-falls-despite-lightspark-partnership
[2] https://seekingalpha.com/news/4486954-sofi-to-launch-international-money-transfer-service
[3] https://www.businesswire.com/news/home/20250819638580/en/SoFi-Partners-with-Lightspark-to-Power-Blockchain-Enabled-International-Money-Transfers