SoFi to Launch Bitcoin-Enabled International Money Transfer Service
In an unprecedented move, SoFi is set to introduce a Bitcoin-driven international money transfer service within its consumer app. As highlighted by Lightspark CEO David Marcus, this makes SoFi the pioneering US bank to leverage Bitcoin and Universal Money Addresses (UMA) for real-time, 24/7, cost-efficient global payments. Utilizing the Bitcoin Lightning Network as its cross-border settlement platform, the service is slated to launch later this year, initially targeting Mexico as its first corridor.
Leading the Way: The First US Bank to Integrate Bitcoin Lightning
On August 19, SoFi announced that its members would soon be able to send money internationally directly from the SoFi app, boasting lower fees and faster delivery compared to conventional remittance services. In this innovative system, dollars are swiftly converted to Bitcoin, transmitted via the Lightning Network, and then reconverted into local currency, deposited directly into the recipient’s bank account—all without the necessity of third-party applications. SoFi has committed to offering total costs that are below the current national average, with transparent exchange rates and fees. This feature will be accessible through SoFi Checking & Savings, provided by SoFi Bank, N.A., a member of the FDIC, with a waitlist currently open.
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Advancing Financial Innovation
Lightspark’s Marcus emphasized SoFi’s role as a trailblazer in the US financial landscape, noting that digital banks are gravitating towards UMA due to its swift, affordable, and secure nature, underpinned by Bitcoin, the sole open payments network. SoFi CEO Anthony Noto highlighted the practical benefits of this development, stating that for numerous SoFi members who frequently send money abroad, the ability to transfer funds quickly and affordably is more than a convenience—it’s a vital enhancement to their financial well-being.
Marcus further amplified the significance of this launch on social media, describing it as a critical milestone. He underscored the strategic appeal for banks: Bitcoin’s neutrality, openness, and decentralized nature make it an attractive alternative to outdated correspondent banking systems, contrasting sharply with other centralized options. Marcus stressed that no one desires to establish another closed, corporate-controlled payment network, predicting that open systems will ultimately prevail. He also encouraged observers to grasp the profound significance of major banks across the US, Latin America, and Europe—and soon worldwide—adopting Bitcoin as neutral financial packets akin to TCP/IP for money.
SoFi’s Role in the Evolving Banking Landscape
This announcement positions SoFi at the forefront of a broader trend among major consumer platforms towards Lightning-based settlements. Lightspark has previously announced partnerships aimed at integrating Lightning and UMA with Revolut in the UK and EEA and Brazil’s Nubank, a leading global digital bank, marking a multi-regional expansion of an “open Money Grid.” In this context, SoFi’s status as a chartered US bank makes this rollout particularly significant within the regulated banking environment.
Defining Milestones in Financial Technology
While the distinction of being the first US bank to integrate Lightning may vary based on definitions and scope, Lightspark’s press release describes SoFi as one of the initial US banks to offer a blockchain-powered remittance service. Marcus’ statements characterize it as the first US bank employing both Bitcoin and UMA to deliver incessant, affordable global payments. What remains indisputable is the architecture: UMA on the front end, Lightning for cross-border routing, and fiat-to-fiat transactions—with SoFi aiming to offer remittance costs below the national average and 24/7 availability within a mainstream banking app.
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