SoFi taps Bitcoin Lightning Network to settle cross-border money transfers
The post SoFi taps Bitcoin Lightning Network to settle cross-border money transfers appeared on BitcoinEthereumNews.com.
SoFi announced it will add Bitcoin’s Lightning Network to its app, becoming the first U.S. bank to use the technology for money transfers. This move lets millions of SoFi members send money abroad faster, cheaper, and with clear fees. SoFi has partnered with Lightspark, the Bitcoin infrastructure company created by former PayPal president David Marcus, to introduce blockchain-powered payments into its mobile banking app. This will make it easier for millions of its members to avoid the delays and high costs of sending money abroad using traditional remittance services. SoFi is now the first U.S. bank to integrate the Bitcoin Lightning Network and the Universal Money Address (UMA) system into everyday banking tools. SoFi touts 24/7 cross-border payments, instant transfers with Bitcoin The rollout will begin in Mexico before expanding to other regions where cross-border transfers are common and families depend on steady financial support from loved ones working abroad. The service works by converting dollars into Bitcoin at the current market rate and routing it across the Lightning network. The Bitcoin is then converted into the local currency, like Mexican pesos, once it reaches its destination country and is deposited directly into the recipient’s bank account. SoFi is also using the Universal Money Address (UMA) system to replace the complicated account numbers and routing codes with a simple email-style identifier. This way, members can send money by typing in something that looks like an email address instead of copying long numbers or worrying about making a small mistake that could delay a transfer. SoFi also promised to be transparent and competitively priced to avoid the hidden costs common in traditional remittance services, where providers use poor exchange rates to take extra profits. The company said costs will be below the U.S. national average for remittances for better savings. The…
