SoFi Launches Blockchain Remittances with Bitcoin Lightning Network

SoFi Technologies is launching a groundbreaking international money transfer service leveraging blockchain technology and the Bitcoin Lightning Network, aiming to provide fast, low-cost cross-border remittances directly through its app. Partnering with Lightspark, SoFi will use the Universal Money Address (UMA) protocol to enable seamless, near-instant global payments with transparent fees and exchange rates displayed upfront. This service, initially targeting Mexico, will convert U.S. dollars to Bitcoin for transfer and reconvert to local currencies, bypassing traditional intermediaries and potentially reducing costs below national averages. SoFi is among the first U.S. digital banks to introduce blockchain-powered remittances, following a trend of financial institutions adopting decentralized technologies for enhanced services. Despite these innovations, Wall Street analysts offer mixed outlooks, with forecasts indicating a possible decline in SoFi’s stock value over the next year. SoFi’s move reflects a broader fintech shift to embrace crypto and blockchain for efficient international financial transactions.