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SoFi Bank to start using Bitcoin for cross-border payments

SoFi Bank to start using Bitcoin for cross-border payments

  • SoFi will enable instant cross-border transfers using Bitcoin and UMA.
  • Transfers will convert USD to Bitcoin via Lightning, then to local currency.
  • The service will first launch in Mexico with lower fees than traditional remittances.

SoFi Bank is preparing to shake up the global remittance industry by introducing a blockchain-powered international money transfer service.

The US digital bank has partnered with Lightspark, a Bitcoin infrastructure company founded by former PayPal president David Marcus, to bring faster and cheaper cross-border payments directly into its app.

SoFi steps into blockchain payments

The new service will allow SoFi customers to send money abroad without relying on traditional remittance providers or third-party platforms.

Instead, transfers will be powered by the Bitcoin Lightning Network and Lightspark’s Universal Money Address, or UMA.

This technology is designed to move dollars across borders instantly, at any time of the day, while ensuring that fees and exchange rates are displayed clearly before each transaction.

SoFi says the service will debut later this year, beginning with Mexico, a key remittance corridor from the United States.

Once rolled out, users will be able to initiate transfers directly through the SoFi app, where US dollars will be converted into Bitcoin, routed across the Lightning Network, and then converted back into the recipient’s local currency before being deposited in their bank account.

Notably, this is not SoFi’s first step into the digital asset space.

The bank began offering crypto trading in 2019, but later scaled back the service following regulatory concerns during the collapse of FTX.

However, with a federal banking license secured and new rules under the GENIUS Act offering greater clarity, SoFi is reentering the sector more aggressively.

During its most recent earnings call, the company outlined ambitions beyond…

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