SoFi Technologies Partners with Lightspark to Launch Bitcoin Lightning Network International Remittance Service
American financial technology company SoFi Technologies announced on Wednesday that it will collaborate with Bitcoin payment service company Lightspark to launch an international remittance service utilizing the Bitcoin Lightning Network, providing its customers with a cheaper and faster cross-border payment experience compared to traditional services.
According to a press release, the new SoFi international remittance service will integrate Lightspark’s Universal Money Address (UMA) standard, enabling instant conversion of U.S. dollars to Bitcoin (BTC) and cross-border transfers via the Bitcoin Lightning Network. The funds will then be immediately converted back to the local currency of the destination country and directly deposited into the recipient’s bank account.
This new service is expected to go live later this year and will be available directly on the SoFi App around the clock, without the need for third-party applications.
Lightspark was founded by former Meta blockchain division head David Marcus, and its UMA is a addressing and messaging standard based on the Bitcoin Lightning Network and Lightning addresses, providing a global payment channel designed for speed and scale. SoFi stated in a press release on Tuesday that transfer rates and fees will be displayed in advance, addressing long-standing pain points in traditional remittance services.
The Lightning Network is a layer-two scaling solution aimed at realizing Bitcoin’s original vision of becoming “global peer-to-peer digital cash.” By establishing an off-chain payment channel network, it can bypass the slow transactions and high fees of the Bitcoin main chain, enabling instant, large-scale micro-payments. This expansion layer is expected to make Bitcoin a practical tool for everyday transactions, offering a viable alternative to traditional payment systems.
The launch of this new feature follows SoFi’s renewed efforts to re-enter the cryptocurrency space. The company had suspended cryptocurrency trading services in 2023 due to its transition to a regulated bank. In June of this year, SoFi revealed plans to provide international remittance services through blockchain and stablecoins, allowing users to invest in crypto assets.
