SoFi Technologies has made history as the first U.S. bank to use the Bitcoin Lightning Network and Universal Money Address (UMA) for sending money overseas. As highlighted by Cointelegraph, the bank’s new partnership with Lightspark is all about making international transfers quicker, cheaper, and easier for everyday people.
A Fresh Chapter in Remittance Innovation
SoFi has teamed up with Lightspark to launch an international remittance service that runs on blockchain technology. The service will allow members to send money abroad instantly through the SoFi app. The first rollout focuses on the U.S.–to-Mexico corridor, with more countries expected to follow in the near future.
This development is more than just a feature update. It represents a clear signal that mainstream banking is moving towards digital assets as a practical tool, not just a speculative one.
How It Works: Lightning-Fast Transfers
When someone sends money through the SoFi app, their dollars are quickly changed into Bitcoin and sent across the Lightning Network, which is built to move money instantly at very low cost. UMA then makes sure the transfer goes to the right person.
On the receiving end, the Bitcoin instantly changes back into local money and goes straight into the person’s bank account. There’s no extra setup, no crypto wallets, and no complicated steps. It all runs quietly in the background, so both sender and receiver enjoy a quick and stress-free transfer.
Speed, Transparency, and Lower Costs
This new model solves many of the problems people face with traditional remittances.
Speed: Payments arrive almost instantly, rather than taking several days.
Transparency: The app shows exchange rates and fees upfront, so users know the cost before sending.
Lower fees: SoFi expects to offer costs below the U.S. national average, making transfers cheaper for families.
The service will be available around the clock through SoFi Checking & Savings. Customers will also have the chance to join a waitlist to get early access later this year.
Voices from the Leaders
SoFi CEO Anthony Noto highlighted the impact of the launch. He explained that for many members, the ability to send money quickly and at a low cost is not only convenient but also a meaningful improvement to their financial lives.
Lightspark CEO David Marcus also stressed the importance of the partnership. He said that UMA combined with the Lightning Network provides a system that is fast, secure, and open to the world. According to him, this integration allows people to move dollars globally within seconds, without the friction of outdated systems.
Why It Matters: A Glimpse of the Future
The global remittance market is worth hundreds of billions of dollars. Many families rely on these transfers for their daily needs. Yet, current methods are often expensive, slow, and filled with hidden fees.
SoFi’s decision to use Bitcoin’s Lightning Network could set a new standard for banks. By offering blockchain-powered remittances directly inside a regulated banking app, the company shows how digital infrastructure can benefit ordinary people.
Final Thoughts
This launch is more than a technology experiment. It is a real, practical fix that brings together speed, low cost, and reliability. The service starts with Mexico but will grow to other countries soon, putting SoFi ahead in modern banking. And if it works well, other banks are likely to follow—slowly turning blockchain into the quiet backbone of how money moves around the world.
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