instant remittances on Bitcoin Lightning Network

SoFi will bring cross-border payments to the Bitcoin Lightning Network infrastructure thanks to Lightspark technology and the UMA (Universal Money Address), promising rapid credits and visible costs before sending. The stated goal is to reduce friction in international remittances, raising the bar in terms of transparency and timing for the entire sector.

According to the data collected by the editorial analysts and the public reports updated on 19/08/2025, the cost reductions observed in the digital-first corridors largely derive from the currency spread rather than solely from the routing fees. 

In similar integration projects observed by the editorial team, the fiat conversion phase (on/off-ramp) and AML/KYC checks have often proven to be the main operational bottlenecks. Industry analysts also note an increase in the capacity and quality of Lightning channels in the past year, with significant variations among geographical corridors.

• TL;DR – What’s changing: remittances on Lightning Network integrated into the SoFi app, with exchange rates and fees displayed before authorization.
• When: partnership announced Tuesday, August 19, 2025; launch expected later in 2025 (integration phase ongoing).
• For whom: SoFi users who send money abroad, with final credit in local currency for the beneficiary.

SoFi x Lightspark: what has been announced

SoFi Technologies has formalized a collaboration with Lightspark to enable international remittances on the Lightning Network directly from the SoFi app, leveraging the UMA (Universal Money Address).

Payments will start in USD and, once the transfer is completed, the beneficiary will see the amount converted into their own local currency. The announcement indicates availability during 2025 and emphasizes that exchange rates and fees will be communicated in advance to ensure full transparency.

How it works (in brief)

• Conversion to the origin: the amount in USD is converted into BTC to route the payment through the Lightning network.
• Off‑chain routing: the transfer travels on Lightning channels, reducing latency and congestion.
• Conversion at destination: at the end of the process, the funds are reconverted and credited in the recipient’s local currency.
• Transparency: exchange rate and fees appear before confirmation.

This architecture combines the speed and scalability of the Lightning network with a banking-like user experience. In this context, the adoption of crypto technologies remains largely invisible to the end user.

Timelines, coverage, and what we know (so far)

The service is in the integration phase, with a launch planned later in 2025. It should be noted that at the moment SoFi has not yet shared information on the initial corridors (served countries), the transaction limits, or the fee structure. These elements will be crucial to measure its competitiveness, along with the availability of on‑/off‑ramp fiat and the liquidity of the Lightning channels in different currencies.

How much it could really cost: numbers, scenarios, and comparison

According to the World Bank – Remittance Prices Worldwide, the global average cost to send 200 USD is around 6%, still far from the UN target of 3%. Digital-first solutions can reduce time and costs; however, the total paid mainly depends on the exchange rate spread, the provider’s fees, and the network fees.

• Conservative hypothetical scenario: on 200 USD, with a 3% spread and a 0.1% network fee, the total cost would be around 6.2 USD (approximately 3.1%).
• Hypothetical aggressive scenario: with a spread of 1.5% and a network fee of 0.1%, the cost would drop to about 3.2 USD (about 1.6%).

These examples show how the Lightning network can contain routing costs, while the key variable remains the exchange rate applied. 

On the timing front, Lightning allows for almost instantaneous confirmations; any delays may arise during the fiat on/off‑ramp conversion phases and in the AML/KYC checks. An interesting aspect is the predictability of the path, which depends on the quality of the channels.

Expected Advantages and Operational Constraints

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Impact on the market and competition

The entry of a player with a large user base like SoFi could accelerate the adoption of the Lightning Network in international remittances, prompting other operators to consider hybrid strategies between banking circuits and crypto infrastructures. In this context, success will also depend on local partnerships, the solidity of the on/off‑ramp, and pricing policies compared to traditional providers.

User experience: what SoFi members will see

• Entering the amount in USD directly in the app.
• Early display of exchange rate, fee, and the net amount intended for the beneficiary.
• Sending money with credit in local currency to the recipient’s account.

The flow resembles a traditional foreign transfer, but with potentially reduced times to minutes and greater cost predictability. It should be noted that any checks may introduce specific delays.

Analysis: speed and savings yes, but with caveats

The combination of Lightning and UMA could offer a tangible advantage in terms of costs and time compared to traditional solutions, especially on digital‑friendly corridors. The actual savings, however, will depend on the conversion spread, the liquidity of the channels, compliance checks, and banking agreements in the target markets. A comprehensive evaluation can come with public fees and a clarified map of the geographical coverage.

Quick FAQ

• How much will it cost? The details on the fees have not yet been communicated. The reduction of the Lightning Network network fees helps to contain the final cost, which will depend on the applied spread and fees.
• How long does a transfer take? Routing on Lightning is almost instantaneous; however, the overall times may be affected by fiat on/off‑ramp and AML/KYC checks.
• Which countries will be supported? The initial countries will be announced later, based on local partners and regulations.
• Are there limits per transaction? They have not been disclosed at the moment; they may vary according to user profile and market.
• Is it necessary to use Bitcoin? Users operate in fiat currency; the conversion into BTC occurs at the infrastructural level, without additional steps for the end user.
• Security and compliance? Processes for identifying and monitoring transactions remain operational, with attention to liquidity and the correct routing of payments.

Conclusion

With the integration of Lightspark and UMA, SoFi prepares international remittances through the Lightning Network within a mainstream app, focusing on speed, transparency, and low costs. 

If pricing models and geographical coverage are confirmed in 2025, the initiative could become a reference for cross-border payments, promoting more efficient solutions throughout the entire value chain.

Sources and insights