SoFi Becomes First U.S. Bank to Integrate Bitcoin Lightning and UMA
SoFi Technologies is breaking ground by becoming the first U.S. bank to integrate the Bitcoin Lightning Network and Universal Money Address (UMA). This move positions SoFi to tap into the $740 billion global remittance market.
- SoFi partners with Lightspark to power instant, low-cost cross-border transfers.
- Transfers convert USD into Bitcoin in real-time, using Lightning rails for settlement.
- Funds arrive directly in recipients’ local bank accounts, with transparent fees.
- Launch begins later this year, starting in Mexico.
- Service available 24/7 to SoFi’s 11.7M members.
SoFi announced that it will integrate Bitcoin’s Lightning Network under a partnership with Lightspark, enabling seamless international transfers powered by blockchain. The initiative will start in Mexico before expanding globally.
Through the UMA system, users will be able to send funds abroad using simple, email-like addresses. The transfers will convert U.S. dollars into Bitcoin in real time, route them via Lightning, and deliver the equivalent in local currency directly into recipients’ bank accounts.
Anthony Noto, SoFi’s CEO, emphasized that the feature is more than a convenience — for many members, it’s a meaningful improvement to their financial lives, reducing both cost and friction in cross-border remittances. SoFi also stressed transparency, promising exchange rates and fees will be shown upfront.
Lightspark, founded in 2022 by former PayPal president David Marcus, already powers Lightning integrations for other major players. Coinbase integrated the solution in April 2024, reporting that 15% of its Bitcoin transactions now run through Lightning. Nubank also partnered with Lightspark in 2024, though it has been slower to roll out the service at scale.
Final Thought:
By bringing Bitcoin Lightning and UMA directly into its banking app, SoFi is moving ahead of competitors in the digital banking space. If adoption scales as it did for Coinbase, this could mark a pivotal shift in how U.S. banks approach Bitcoin-powered payments.
