SoFi Technologies is launching a new international remittance service that integrates Bitcoin Lightning Network and Universal Money Addresses (UMAs), making it the first U.S. financial institution to do so.

Initially launching in Mexico, the service aims to expand to other countries, targeting the $740.5 billion remittance market, and benefits users by offering instant, low-cost transfers.

The service allows recipients to receive funds directly in their local currency into their bank accounts without needing to convert Bitcoin back to fiat, and it will be available 24/7 with transparent rates.

The integration leverages Lightspark’s infrastructure, co-founded by former PayPal president David Marcus, which provides the blockchain technology for this service, including UMA technology for easy transfers via email-like addresses.

The move positions SoFi at the intersection of traditional finance and emerging decentralized technologies, aiming to simplify cross-border transactions and reduce costs.

This initiative is part of SoFi’s broader strategy to reintroduce crypto services, which had been paused due to regulatory uncertainty, now resumed following new crypto-friendly regulations in June 2025.

The service is exempt from the 1% remittance tax under the One Big Beautiful Bill Act, and crypto transactions are outside the scope of this tax, giving SoFi a regulatory edge over traditional remittance providers.

Despite the crypto service restart, SoFi’s stock declined over 6% amid broader market downturns influenced by geopolitical uncertainty, but the company remains optimistic about its long-term growth prospects.

SoFi’s Q1 2025 financial results showed strong growth, with revenue exceeding expectations and 800,000 new users, driven by remittance and crypto offerings, highlighting a diversified business model.

The success of this initiative depends on regulatory acceptance, user adoption, and the continued growth of the Lightning Network as a reliable payment layer.

This development aligns with fintech trends of adopting blockchain for faster, more transparent, and cost-effective financial services, fostering greater financial inclusion and a more interconnected global economy.

The partnership with Lightspark and the integration of Bitcoin Lightning technology aim to challenge traditional remittance giants by offering lower fees and 24/7 availability, especially in lucrative corridors like Mexico.