Blockchain-Powered Transactions: SoFi Pairs With Lightspark

SoFi app users will soon be able to send and receive money internationally with faster speeds and lower costs than traditional remittance services.

Enabled by Lightspark, the new service is expected to offer fees that are below the national average. 

Exchange rates and fees will be displayed upfront before any transaction takes place to ensure full transparency for users. The service will also be available 24/7, taking place directly within the app.

In addition, SoFi will be one of the first US banks to offer blockchain-powered remittance services.

Anthony Noto, CEO of SoFi, says: “For many SoFi members who regularly send money to loved ones internationally, the ability to quickly transfer money at low cost isn’t just a convenience, it’s a meaningful improvement to their everyday financial lives.

“By embedding this directly into SoFi’s app, we’re unlocking the value of blockchain technology to give members faster, smarter, and more inclusive access to their money.”

Through blockchain technology, Lightspark uses Universal Money Address (UMA) to send and receive money. 

UMA uses Bitcoin Lightning Network and Lightning Addresses to enable efficient payments. 

What makes blockchain useful

Blockchain technology is becoming fundamental to various industries and services, such as global trade, sustainability, insurance and healthcare.The technology enables efficient processes for businesses aplenty. 

SoFi’s new service will transfer funds from USD to Bitcoin in real-time, then use the Bitcoin Lightning Network to send money across borders. 

Upon arrival at the intended destination, funds are immediately transferred back into local currency before being deposited directly into the recipient’s account. 

Blockchain technology is useful as it allows for transparency throughout the process, making for easier tracking and monitoring. 

Lightspark says its technology allows for a seamless and secure transfer experience with partner banks and financial platforms that use its service globally. 

Founded by former Meta executives, the company provides APIs, SDKs and tools that enable businesses to integrate instant, low-cost Bitcoin payments. 

Co-founder and CEO of Lightspark, David Marcus, comments: “SoFi is one of the most innovative and forward-thinking financial platforms in the US today.

"Digital banks are embracing UMA because it's fast, cheap, and secure, and it uses the only open payments network that exists, Bitcoin. 

“UMA on SoFi means customers can move dollars instantly, any time, globally, and we're excited to see the demand via SoFi's waitlist, proving that people are ready for the future of payments.”

Lightspark’s mission is building an instant, open global infrastructure for sending payments to ensure access to the full potential of digital payments for everyone. 

Rolling out

The first phase of the international transfer service will be available in Mexico. The full list of countries expected to benefit from the collaboration has not yet been named. 

The reasoning behind a phased approach is to ensure security, consistency and safety for customers. This builds on Lightspark and SoFi’s mission to build trust for customers. 

The launch of this service will happen later this year.