SoFi Technologies is set to become the first U.S. bank to harness the power of the Bitcoin network and Universal Money Address (UMA) to streamline international money transfers. In partnership with Lightspark, SoFi is launching a blockchain-based service designed to make sending money abroad faster, cheaper, and more transparent—directly from the SoFi app.
The service will allow users to send funds internationally, starting with the U.S. and Mexico, using the Bitcoin Lightning Network—a scalable, low-cost solution built on top of Bitcoin. This positions SoFi to compete in the $740.5 billion global remittance market, currently dominated by legacy financial institutions and high-fee transfer apps.
Real-Time Transfers and Lower Fees with Bitcoin Technology
Unlike traditional cross-border payments, SoFi’s new offering will convert U.S. dollars into Bitcoin in real time, enabling instant transmission over the Lightning Network. On the receiving end, the Bitcoin is automatically converted back into local currency and deposited into the recipient’s bank account—no crypto knowledge or wallet required.
SoFi aims to disrupt the status quo by offering lower transfer costs than the U.S. national average, and ensuring full transparency in exchange rates and fees before each transaction. The service will be available 24/7, giving users flexibility and real-time access to international transfers from within the SoFi app.
Competing with Coinbase and Nubank in Blockchain-Based Remittances
SoFi is not alone in this space. Industry players like Coinbase and Nubank have already introduced similar blockchain-based remittance solutions. However, SoFi’s banking status and large customer base—now reaching 11.7 million members—give it a unique advantage to scale quickly and offer a more integrated, regulated experience.
With this move, SoFi is not just adding another feature; it’s redefining how global money movement can work—more efficiently, affordably, and securely—by using blockchain technology without requiring users to manage cryptocurrency directly.
The rollout is expected later this year, and could mark a turning point for how millions of Americans send money across borders.
