SoFi Technologies is set to make history as the first U.S. bank to integrate the Bitcoin Lightning Network and Universal Money Address (UMA). In partnership with Lightspark, SoFi will enable millions of users to send international payments faster, cheaper, and more transparently than ever before.
This move positions SoFi to compete directly in the $740.5 billion global remittance market, offering an alternative to traditional cross-border payment services.
Why This Move Matters for Global Remittances
The remittance industry has long been dominated by costly, slow, and outdated systems. According to the World Bank, the average global remittance fee hovers around 6%, eating into the money families depend on.
By using Bitcoin Lightning, SoFi promises to:
- Reduce costs below the national average
- Enable instant transfers across borders
- Operate 24/7 with no downtime
- Provide full transparency on fees and exchange rates
For SoFi’s 11.7 million members, this could be a game-changing shift in financial accessibility.
SoFi’s new service will allow customers to:
- Convert USD into Bitcoin in real time through the SoFi app.
- Route funds via the Lightning Network, a fast and scalable Bitcoin payment layer.
- Deliver money directly to the recipient’s bank account in local currency.
The Universal Money Address (UMA) adds a user-friendly touch, enabling transfers with an email-style identifier, making crypto-powered remittances as simple as sending a message.
Lightspark’s Role in the Integration
Founded in 2022 by David Marcus, the former PayPal president, Lightspark builds Bitcoin infrastructure for global payments. Its UMA system allows exchanges, banks, and fintechs to offer Lightning-based transfers at scale.
SoFi is following in the footsteps of Coinbase, which adopted Lightspark’s Lightning rails in 2024. Coinbase reported that 15% of its Bitcoin transactions now occur on Lightning, showing strong market demand for faster and cheaper Bitcoin transactions.
While other global players like Brazil’s Nubank have partnered with Lightspark, SoFi will be the first regulated U.S. bank to bring this technology to retail customers.
For Americans and Mexicans sending money abroad—often to support family—the impact goes beyond convenience. Lower fees mean more money stays in the hands of recipients, improving financial stability in emerging markets.
Key Takeaways
- SoFi is the first U.S. bank to launch Bitcoin Lightning payments.
- Partnership with Lightspark enables UMA-powered, real-time transfers.
- The service targets the $740B global remittance market.
- Costs will be lower than traditional remittance fees, with full transparency.
- Launch begins later in 2025, starting with Mexico before global expansion.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.