SoFi Bank is set to use Bitcoin’s Lightning Network to offer low-cost international money transfers, starting with Mexico later this year.
Through its partnership with payments infrastructure provider Lightspark, announced on August 19, the bank will enable near-instant cross-border payments by converting U.S. dollars to Bitcoin in real-time and sending them over the Lightning Network.
The transferred funds are then automatically converted into the recipient’s local currency and deposited directly into their bank account. This launch represents the first time a U.S. bank has integrated blockchain-based remittance features directly into its core banking app.
What does this mean for users of SoFi Bank?
The new feature will allow SoFi’s 11.7 million members to send money internationally at a fraction of the cost of traditional remittance services. All transfers will occur directly within the SoFi app, eliminating the need for third-party platforms.
The company expects fees to stay below the national average, with all exchange rates and costs clearly disclosed upfront for full transparency.
SoFi CEO Anthony Noto said the service is designed to deliver a “meaningful improvement” for customers who regularly send money overseas.
“By integrating this feature directly into the SoFi app, we’re harnessing the power of blockchain technology to give members faster, smarter, and more accessible access to their money,” he added.
SoFi Bank and Its Bitcoin Lightning Partnership
At the heart of SoFi’s new service is Lightspark’s Universal Money Address (UMA), which lets users send and receive funds using simple, email-like identifiers. Behind the scenes, UMA routes payments through Bitcoin’s Lightning Network—a Layer 2 protocol that enables fast, low-cost transactions by operating off-chain.
When a transfer is initiated, the system converts U.S. dollars into Bitcoin in real time, sends the BTC via Lightning channels, and converts it again into the recipient’s local currency. The funds are deposited directly into the recipient’s bank account, with no need for them to hold or manage cryptocurrency.
Initially, the feature will support transfers to Mexico, with additional countries added in a phased rollout. SoFi says this gradual expansion ensures reliability and security from day one.
SoFi’s Reentry into the Digital Asset Space
SoFi is reentering the crypto space, two years after regulatory pressures forced it to step back.
In 2023, the digital bank scaled back its crypto operations—not by choice, but due to mounting regulatory constraints that limited its ability to operate within the rules. By November, customers were asked to transfer or liquidate their holdings, and services were subsequently shut down.
A shift in the regulatory environment, however, has paved the way for a return. In April 2025, CEO Anthony Noto confirmed SoFi’s renewed focus on crypto, announcing plans to integrate blockchain solutions across its lending, investing, payments, and protection products.
As reported by crypto.news, the bank resumed spot cryptocurrency trading on its platform in June.
