SoFi has announced the launch of a new international remittance service that will utilize blockchain technology and the Bitcoin Lightning Network to enhance speed and reduce costs for remittances.
Overview of SoFi's New Service
SoFi is reported to become one of the first U.S. banks to integrate blockchain technology in the international remittance sector. The service is expected to roll out later this year.
How the Transfer System Works
The remittance system will operate as follows: U.S. dollars will be converted into Bitcoin in real-time, routed across the Lightning Network, and then instantly settled back into the local currency in the recipient's bank account. This blockchain-enabled process eliminates the need for third-party intermediaries, reducing costs and significantly cutting transfer times.
Service Expansion and Market Impact
The service will debut in Mexico before potentially expanding to other markets. SoFi projects that overall costs will be below current national average rates for remittances.
With the launch of this service, SoFi aims to set a new standard for low-cost blockchain-enabled banking services, potentially impacting the international remittance market.
