Maria sends $300 to her family in Mexico every month. Like millions of people in America, she pays hefty fees and at times has to wait for a few days for the money to be transferred. Now this is about to change. SoFi Technologies announced on Tuesday that it will become the first US bank to use Bitcoin’s Lightning Network for international money transfers, potentially saving customers millions in fees while delivering funds in seconds instead of days.
The digital bank has partnered with Lightspark, a Bitcoin payments company, to launch the new service that converts dollars to Bitcoin, zips the money across borders instantly, and then converts it back to local currency in the recipient’s bank account.
Global Money Transfers Just Got a Makeover
“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,” Anthony Noto, SoFi’s CEO, wrote on social media.
The service will be launched later this year, starting with Mexico. SoFi promises costs “below the current national average” with full transparency on exchange rates and fees before customers hit the send button.
The move puts SoFi ahead of traditional banks in the massive global remittance market, which reached $740.5 billion in 2024. The service will be available 24/7 directly through the SoFi app to its 11.7 million members. The service will initially cover Mexico, with additional countries planned shortly after the launch. SoFi says this approach ensures security and reliability from day one.
Effortless by Design
The technology uses Universal Money Address (UMA), which works like email addresses for money transfers. Customers can send funds using simple addresses while the system handles the complex Bitcoin transactions behind the scenes.
Here’s what happens when someone sends money:
- Dollars convert to Bitcoin instantly
- Bitcoin travels across the Lightning Network in seconds
- Bitcoin converts back to local currency
- Money appears in the recipient’s bank account
“Digital banks are embracing UMA because it’s fast, cheap, and secure, and it uses the only open payments network that exists: Bitcoin,” said David Marcus, CEO of Lightspark.
SoFi joins other major financial companies adopting Bitcoin technology. Coinbase integrated Lightspark’s Lightning solution in April 2024, and 15% of its Bitcoin transactions now use Lightning rails. Brazilian digital bank Nubank, with 100 million customers, also partnered with Lightspark in June 2024 to offer Bitcoin Lightning payments across Latin America.
For customers tired of expensive and slow international transfers, SoFi’s Bitcoin-powered solution could go a long way to change how they remit money.
