SoFi Becomes First U.S. Bank to Integrate Bitcoin Lightning for Cross-Border Payments

SoFi Technologies, the digital banking giant, will integrate Bitcoin Lightning Network and Universal Money to make cross-board payments easier. The digital bank is about to make history as the first U.S. bank to integrate a blockchain network in its day-to-day banking. This new alliance will help its users make low-cost, instant international money transfers. SoFi confirmed in the announcement that the service will launch later this year and start with Mexico before becoming available in other countries and regions.

SoFi to Integrate Bitcoin Lightning in Its Infrastructure

The initiative is powered by a partnership with Lightspark, a Bitcoin payments infrastructure company founded in 2022 by former PayPal president David Marcus. By using UMA technology, SoFi members will be able to send funds abroad through an email-style address directly from the SoFi app.

For millions of Americans who regularly send money to loved ones overseas, SoFi’s Lightning-enabled transfers promise a major improvement. Unlike traditional remittance channels, which often charge high fees and take days to process, SoFi’s new system will convert U.S. dollars into Bitcoin in real time, move them via the Lightning Network, and deposit the recipient’s local currency directly into their bank account.

“For many SoFi members, the ability to quickly transfer money at low cost isn’t just a convenience, it’s a meaningful improvement to their everyday financial lives,” SoFi CEO Anthony Noto said on X.

The remittance market, valued at $740.5 billion in 2024, has long been dominated by players like Western Union and MoneyGram. SoFi's entry brings a blockchain-based alternative that could change the industry by making transfers faster, cheaper, and more open.

The digital bank made it clear that all fees and exchange rates will be shown before transactions are finalized, making sure that its 11.7 million members can see everything. Transfers will be available 24/7, unlike many bank-dependent remittance services. The company also stated costs will remain “below the national average,” giving it a competitive edge in a crowded market.

SoFi's use of Lightspark comes after Coinbase did the same thing in April 2024, when it reported that 15% of its Bitcoin transactions now operate on Lightning rails. In June 2024, Brazilian neobank Nubank also said they were working together, but full integration has not yet been confirmed.

As SoFi is ready to launch its Bitcoin-based transfer service, experts think the move could speed up the use of the Lightning Network in traditional finance. If it works, the bank's integration could encourage other U.S. banks to do the same, which would be a big step forward for crypto-enabled banking.