SoFi Partners with Lightspar to Integrate Bitcoin Lightning Network

Overview of the cooperation

SoFi is returning to the crypto space after a hiatus in 2023 to become a national bank. The company is best known for its digital financial services like student loans and wealth management. The return comes at a time when U.S. regulations are becoming more crypto-friendly. Bitcoin and Ethereum ETFs, for example, have been approved in 2024. SoFi can use Universal Money Address (UMA), a technology based on the Lightning Network, to make near-instant cross-border transfers thanks to a partnership with Lightspark, a company founded by former PayPal CEO David Marcus.

SoFi’s primary goal is to meet the needs of its 11.7 million members, especially those who regularly send money abroad, at lower costs and faster speeds than traditional services like MoneyGram or Western Union. Immigrant communities, especially those sending money from the United States to Latin American countries like Mexico (the first corridor chosen), drive the global remittance market, which is expected to reach $740 billion by 2024. Lightspark has experience building Bitcoin-based payment systems and has a solution that reduces transaction costs and times by using the Lightning Network to process off-chain payments quickly and cost-effectively.

Threat to the $740 billion remittance market

SoFi’s remittance service will convert USD to Bitcoin in real time, using the Lightning Network to move money across borders, then convert it back to local currency and deposit it directly into the recipient’s bank account. This eliminates the costly and slow steps of the traditional banking system. SoFi promises to offer fees that are lower than the national average, with rates and costs displayed transparently before the transaction. The Lightning Network, which can process transactions in seconds, outperforms traditional methods that can take hours to days.

The service will launch first in Mexico, with plans to expand to other countries, leveraging Lightspark’s global network of partners. This signals SoFi’s ambition to compete not only domestically but also globally. The adoption of blockchain by a major U.S. bank marks the technology’s acceptance in the traditional financial sector, and could spur other institutions like Bank of America and JPMorgan Chase to consider similar solutions.

With low fees and speed, SoFi could take market share from traditional service providers, where fees average around 6% of transaction value, according to the World Bank. This is especially important for immigrant communities in the United States, who often send money home. Integrating the Lightning Network brings Bitcoin closer to being the “global digital cash” that Satoshi Nakamoto originally envisioned, although recipients do not need to own a cryptocurrency wallet and still receive money in fiat.

Evaluation and Conclusion

SoFi’s partnership with Lightspark on August 19, 2025, making it the first U.S. bank to integrate the Bitcoin Lightning Network, is a major step forward in bringing blockchain technology to traditional finance. The new international remittance service promises not only lower costs and increased speed for SoFi’s 11.7 million members, but also challenges the $740 billion remittance market by competing directly with traditional giants. However, to succeed, SoFi will need to overcome regulatory, security, and scalability risks while maintaining the trust of its user community.

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