SoFi Technologies Inc (NASDAQ:SOFI) shares trader higher Tuesday before paring gains after the company announced blockchain-enabled international money transfers.
What Happened: SoFi said it partnered with Lightspark to offer an international money transfer service enabled by the Bitcoin (CRYPTO: BTC) Lightning Network. The service will allow users to send funds abroad from the SoFi app with lower fees and faster delivery compared to traditional remittance service providers.
“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, CEO of SoFi.
“By embedding this directly into SoFi’s app, we’re unlocking the value of blockchain technology, to give members faster, smarter, and more inclusive access to their money.”
The service, which is expected to launch later this year, will be available 24/7 directly on the SoFi app and display exchange rate and fees up front before a user initiates a money transfer. The service converts U.S. dollars to Bitcoin in real-time and routes funds through the Lightning Network before funds are converted to local currency and delivered to the destination.
SOFI Price Action: SoFi shares were down 0.9% at $23 at the time of publication Tuesday, according to Benzinga Pro.
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