Crypto Wallets Challenge Neobanks, Redefining Fintech
Crypto Wallets Can ‘Directly Compete With Neobanks’ as Onchain Payment Tools Expand
A growing set of crypto wallets and so-called Web3-native neobanks are positioning themselves as alternatives to traditional banking apps by combining fiat and crypto access with global payment capabilities, built primarily on blockchain infrastructure.
Unlike conventional neobanks, which typically rely on partner banks and card networks behind the scenes, Web3-native neobanks aim to operate entirely on blockchain rails. They commonly use stablecoins for payments and balances, along with smart accounts and self-custody for holding funds rather than standard bank deposit accounts.
Examples of projects building in this area include Tria, Superform, ether.fi, VPay, Infini, Gnosis Pay, Moon, WeFi, Sanafi Onchain, AllScale, and FASQON. The shared idea is that users can hold and move value onchain while still accessing familiar payment functionality.
In this model, user funds are often held directly on a blockchain, sometimes through smart accounts or MPC-based wallets. That approach contrasts with the custodial setup used by many financial apps, where a company holds customer funds in pooled accounts and manages access internally.
At the center of this shift is the crypto wallet itself. A cryptocurrency wallet is a way to store the public and private keys (or a seed phrase) that control access to digital assets. The private key enables a user to authorize transactions on a public blockchain ledger, effectively spending the associated cryptocurrency.
The broader context is a continued push to make crypto-native tools resemble the convenience of everyday financial services, while keeping assets under user control. By relying on stablecoins and programmable accounts rather than traditional banking infrastructure, wallets and Web3-native neobanks are seeking to offer banking-like features with onchain settlement and self-custody as the foundation.
