SoFi stock rises after partnering with Lightspark for blockchain transfers

Published 19/08/2025, 14:10
© Reuters.

Investing.com -- SoFi Technologies Inc (NASDAQ:SOFI) stock rose 2.7% after announcing a partnership with Lightspark to launch blockchain-enabled international money transfers directly through the SoFi app.

The fintech company plans to introduce the service later this year, positioning itself as one of the first US banks to offer blockchain-powered remittances. The new service promises lower fees and faster delivery compared to traditional remittance providers, with total costs expected to be below the national average.

SoFi’s international money transfer service will utilize Lightspark’s Universal Money Address (UMA) technology, which leverages the Bitcoin Lightning Network to facilitate cross-border transactions. The system works by converting US dollars to Bitcoin in real-time, routing funds across borders via the Lightning Network, and then instantly converting them back to 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 service will initially launch in Mexico before expanding to additional countries. SoFi members can already join a waitlist to gain early access when the feature becomes available through SoFi Checking & Savings later this year.

Western Union (NYSE:WU), a traditional player in the international money transfer market, saw its stock fall 1% following the announcement.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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