SoFi Technologies will let customers send money overseas using Bitcoin and a Universal Money Address, the company said on Tuesday. The move makes SoFi the first US bank to tap the Bitcoin network and UMA to route payments over the Lightning Network.
The new service will go live later this year and will start in Mexico. SoFi said the aim is to offer faster and cheaper transfers for Americans, Mexicans and other users by converting US dollars to Bitcoin in real time and sending value across borders via Lightning to be delivered as local currency to recipients’ bank accounts.
Partnership and launch
SoFi is working with Lightspark, a payments infrastructure firm, and Lightspark built UMA, which works like an email address for moving money on Lightning. Lightspark was founded in 2022 by David Marcus, who once led PayPal.
SoFi said the service will roll out to its members later this year, starting with transfers to Mexico. The company did not give an exact launch date in the announcement.
How the service works?
Users will start a transfer inside the SoFi app, and the app converts dollars to Bitcoin at the time of the transfer. The Bitcoin value moves over the Lightning Network, and at the far end, the funds arrive and are exchanged into the recipient’s local currency.
The recipient gets money in their bank account, and SoFi said exchange rates and fees will be shown to members before they send.
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SoFi said fees will run below the current national average for remittances. The company also said members will see the total cost up front. The service will operate 24 hours a day, 7 days a week. SoFi has about 11.7 million members who could access the new feature once it launches.
Why does this matter?
Remittances are a big market, and the sector was valued at $740.5 billion in 2024. Many people send money to their families abroad. Those transfers can take time and cost a lot.
SoFi says using Lightning and UMA cuts delays and lowers fees, and the move could help people who make regular cross-border payments.
More banks and financial firms are exploring crypto tools and blockchain rails for payments. Regional banks, challenger banks and some larger institutions are testing or rolling out crypto-related services.
They are doing this to try to speed up transfers, lower costs and add new payment options. SoFi’s plan puts a traditional bank model and app front end together with crypto rails.
What do executives say?
SoFi CEO Anthony Noto posted on X(Twitter) that fast, low-cost transfers are not just a convenience for many members, but a real gain for their daily lives. He said the feature will help members who regularly send money to loved ones abroad.
Lightspark and SoFi framed the tie-up as a way to make international transfers smoother from within a bank app.
SoFi did not spell out limits on transfer size or full country coverage beyond Mexico. The company also did not list timing for expansion to other nations.
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