SoFi integrates Bitcoin Lightning and UMA for fast, low-cost international transfers, starting with Mexico. A bold move in fintech.
SoFi Technologies made a big announcement that has caught the attention of many. The digital bank will be the first U.S. bank to use the Bitcoin network and Universal Money Address, or UMA. The new service will allow individuals in the United States, Mexico, and other regions to send funds with the help of the Bitcoin Lightning Network.
SoFi Partners with Lightspark to Launch Blockchain Money Transfers
SoFi has partnered with Lightspark, a Bitcoin payment focused company. The two are also introducing a new blockchain-based money transfer platform. This service is going to be launched later this year with Mexico as the first destination. The collaboration demonstrates the way more conservative banks are beginning to utilize new technology to enhance their products. Anthony Noto, the CEO of SoFi, said that this is a major step in the right direction.
Noto said that fast and cheap transfers are significant to the SoFi members. A large number of them remit money to relatives or friends abroad. According to him, the addition of this feature to the SoFi application renders blockchain technology easy to use. This would assist members in transferring funds in a quicker and smarter way. It is aimed at ensuring that the financial services are accessible to all individuals using the app.
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The CEO and co-founder of Lightspark David Marcus commended SoFi on its innovative strategy. He added that UMA is fast, cheap, and secure, which is why digital banks such as SoFi prefer to choose it. The open network that UMA relies on Bitcoin is unlike other payment systems. Marcus also referred to an increasing number of people on the waiting list of the service. This demonstrates that the individuals are keen on this new method of money management.
New SoFi Service Converts USD to Bitcoin for Cross-Border Transfers
The new money transfer service will start later this year with low fees. SoFi will charge among the lowest rates to transfer money internationally, beating the national average. The exchange rates and the fees will be revealed to members before they send any money. The service will be available 24/7 and will be found within the SoFi app. This implies that there is no need to buy other applications, but it is straightforward.
SoFi will convert U.S dollars to Bitcoin within a short duration of time. The funds will move across borders through the Lightning Network. After that, it will be converted to the local currency and directly deposited in the bank account of the recipient. The approach makes the transfers fast and secure. The experience will be smooth and trusted across the network of partner banks and platforms that Lightspark has.
The service will initially be available in Mexico, and more countries will be on-boarded later. This step by step plan is aimed at speed, security, and reliability in the early stage. Other countries will follow in as the service expands. However, it is a hybrid of traditional banking and new crypto technology. The ambitious move of SoFi can make other banks attempt something similar. This may define the future of international finance in new and interesting ways.
