SoFis BitcoinPowered Remittance Service Fails to Stem 611% Stock Plunge as $193B Volume Ranks 32nd in Market Activity

SoFi Technologies (SOFI) declined 6.11% on August 19, 2025, with a trading volume of $1.93 billion, ranking 32nd in market activity. The drop occurred despite the company’s announcement of a partnership with Lightspark to launch an international money transfer service leveraging the Bitcoin Lightning Network. The service, set to debut later this year, aims to enable faster, lower-cost cross-border transactions by converting USD to Bitcoin in real-time, routing funds via the Lightning Network, and reconverting to local currencies for recipients. The initiative is positioned to offer transparency in fees and exchange rates, accessible 24/7 through the SoFi app.

SoFi CEO Anthony Noto emphasized the service’s potential to enhance financial inclusion, stating that low-cost international transfers are critical for users sending money to loved ones. The partnership with Lightspark, which utilizes the Universal Money Address (UMA) technology, marks SoFi as one of the first U.S. banks to integrate blockchain-based remittances. Initial deployment will focus on Mexico, with plans for global expansion. Lightspark CEO David Marcus, a former Meta executive, highlighted Bitcoin’s Lightning Network as a scalable alternative to traditional payment systems like SWIFT.

Despite the strategic move, the stock’s decline suggests market skepticism or broader sector pressures. SoFi had previously paused crypto services in 2023 due to regulatory uncertainties but resumed operations in June 2025 under updated guidelines. The partnership aligns with its renewed focus on crypto-friendly financial products but has yet to translate into immediate investor confidence. Analysts maintain a “Hold” rating, with an average price target of $20.06, implying a potential 14.2% downside from current levels.

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