Overview
SoFi Technologies is preparing to enable remittance payments using Bitcoin’s Lightning Network in collaboration with Lightspark, allowing users to conduct instantaneous and affordable international money transfers.
Key Details
- The forthcoming remittance service will function through the SoFi app, allowing users to send U.S. dollars which recipients will obtain as local currency.
- This initiative follows SoFi’s return to cryptocurrency services after previously halting them in 2023 during their transition to becoming a national bank.
The Lightning Network
The Lightning Network is a second-layer solution aimed at solving Bitcoin’s scalability issues, promoting fast and inexpensive transactions by creating off-chain payment channels. This enhances Bitcoin’s usability for day-to-day transactions, positioning it as a contender against traditional financial systems.
In-Depth
The remittance service set to launch later this year promises upfront exchange rates and clarity on fees, addressing pain points that have long troubled traditional remittance methods. SoFi’s integration with Lightspark’s Universal Money Address (UMA) brings a global payment mechanism focused on efficiency and reach.
For more information, see the original SoFi announcement here.
