Shares of SoFi Technologies Inc (NASDAQ:SOFI) rose 2.7% after the company revealed a collaboration with Lightspark to enable blockchain-based international money transfers directly within the SoFi app.
The fintech firm plans to roll out the service later this year, aiming to become one of the first U.S. banks to provide remittances powered by blockchain. The offering promises faster transactions and lower fees compared with conventional remittance services, with total costs projected to fall below the national average.
SoFi’s new international transfer system will leverage Lightspark’s Universal Money Address (UMA) technology, which utilizes the Bitcoin Lightning Network to handle cross-border payments. The process converts U.S. dollars to Bitcoin in real-time, routes the funds through the Lightning Network, and then immediately converts them back to the local currency for delivery to the recipient’s bank account.
“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,” said Anthony Noto, SoFi CEO.
The initial rollout will target Mexico, with plans to expand to other countries later. SoFi members can already join a waitlist to gain early access once the feature launches via SoFi Checking & Savings.
Following the announcement, shares of Western Union (NYSE:WU), a traditional remittance provider, declined by 1%.
This content is for informational purposes only and does not constitute financial, investment, or other professional advice. It should not be considered a recommendation to buy or sell any securities or financial instruments. All investments involve risk, including the potential loss of principal. Past performance is not indicative of future results. You should conduct your own research and consult with a qualified financial advisor before making any investment decisions.