The supply of stablecoins and the emergence of stable chains are growing rapidly, driving demand for payments, cross-border transfers, and asset management on Web3. DeFi has become the core infrastructure, while more users want to use stablecoins in daily life. Web3 Neobanks are therefore not just utility products, but strategic pieces capable of reshaping the future of payments and personal finance.
1. What is a Neobank?
Neobank is a banking model built entirely on digital platforms without physical branches. In Web2, examples include Revolut, Monzo, or N26. Their popularity comes from offering financial services that are faster, cheaper, and more user-friendly than traditional banks.
In the Web3 context, the concept of a Neobank is redefined to fit a decentralized structure. A Web3 Neobank is a banking model that integrates blockchain, on-chain identity, stablecoins, and liquidity protocols to create an alternative to traditional banks. Users can deposit stablecoins, borrow, transfer money internationally, invest in yield products, and manage assets without intermediaries.
The most important feature of a Web3 Neobank is that it does not merely digitize financial services but re-architects banking in a permissionless and transparent way. All activities are recorded on-chain, removing reliance on commercial banks, increasing censorship resistance, and reducing operating costs. This makes Web3 Neobanks not only convenient but also equipped with new features such as self-custody, on-chain transparency, and interoperability with multiple DeFi protocols.
If fintech modernized banks, Web3 Neobanks aim to completely replace the existing banking structure. This is the next step in the tokenization of traditional finance.
2. Structure of a Web3 Neobank
A Web3 Neobank is not just a standalone app but a full financial ecosystem built on multiple blockchain infrastructures. A standard Neobank typically consists of five main layers, combining user experience, payments, asset management, DeFi, and stablecoin integration to create a fully decentralized financial super app.
Illustration of the basic structure of NEOBANK
2.1 Custody Layer
Ensures ownership and security of user assets. It may use self-custody wallets like Gnosis Safe or hybrid models with insurance such as Ether.fi. This layer is critical for investor confidence regarding security and custodial risks.
2.2 Assets Layer
The backbone of a Neobank consists of stablecoins such as USDC, USDT, FDUSD, or yield-bearing stablecoins, enabling stable transactions without volatility concerns. Additionally, crypto blue-chips like ETH and BTC can be used as collateral or for lending, unlocking DeFi yield opportunities.
2.3 Wallet and On-Chain Identity Layer
Includes smart wallets, account abstraction, MPC/smart signers, and social login, allowing users to access Neobank as easily as Web2 apps. This layer optimizes UX and reduces friction for onboarding new crypto users.
2.4 Liquidity and Yield Layer
Integrates lending protocols, collateral management, yield modules, and even real-world assets to generate stable returns. Users can optimize idle capital through staking, farming, or automated investment funds.
2.5 Fiat Bridge and Spending Layer
Enables fiat on/off-ramp, cross-border transfers at 10–50 times cheaper than SWIFT via partners like Moonpay, Stripe, or Transak, or native mechanisms. It offers Web3 bank wallets, asset dashboards, physical and virtual cards, email payments, and direct stablecoin spending. This layer directly interacts with users and delivers a seamless financial experience.
3. Why Did Neobanks Emerge? Why is the Narrative Likely to Explode?
Neobanks are predicted to be a leading narrative in the 2025–2026 cycle due to the convergence of on-chain payment demand, stablecoins, and seamless user experiences. To understand why Neobanks emerged and why this narrative has explosive potential, consider the following market drivers.
3.1 Growing Stablecoin Supply and Institutional Flow into Web3
Stablecoins are currently the most stable assets in the crypto market. As institutional participation increases, stablecoins become a core asset for:
- Payments
- Cross-border transactions
- Value storage
- Short-term investment
Web3 Neobanks occupy a central position to serve this capital flow. As long as stablecoin supply grows double-digit annually, Neobanks automatically benefit.
3.2 Web3 Lacks Bank-Standard Financial Experiences
Crypto has thousands of financial apps but no unified product like Revolut or Paypal in Web2. New users want:
- Fast account opening
- Low-cost transfers
- Safe savings
- Portfolio management and risk monitoring
Web3 Neobanks address the biggest UX bottleneck in crypto: complexity and lack of standardization.
3.3 Banking Tokenization Trend and Fintech 3.0 Race
Fintech faces a downturn due to stricter regulations, higher operational costs, and international expansion challenges. Web3, in contrast, allows for global permissionless banking. This is a golden opportunity for:
- Fintech migration to Web3
- Banks implementing blockchain strategies
- Crypto startups competing directly with banks
Web3 Neobanks bridge traditional finance and crypto rather than merely operating in parallel.
3.4 High Costs of Traditional Cross-Border Transfers
SWIFT costs $20 to $50 per transfer and takes 2–5 days to complete. Web3 enables near-instant international transfers at almost zero cost. For migrant workers, freelancers, international trade, or SMEs, Web3 Neobanks are a highly efficient solution.
3.5 Demand for Censorship-Resistant Decentralized Banking
Some regions have unstable or highly censored banking systems. Web3 Neobanks allow users to:
- Self-custody assets
- Avoid account freezes
- Transfer funds uninterrupted across borders
- Protect ownership of financial assets
This is especially appealing to crypto communities that value decentralization.
3.6 Rapid Growth in Investment Funding
In 2024, fintech alone raised around 13.6 billion USD in venture capital, up from 10.1 billion USD in 2023, with early 2025 showing continued investment in blockchain and crypto startups. Funds like Multicoin, Paradigm, Dragonfly, and Castle Island see stablecoin payment applications integrated into Neobanks as the most critical layer of crypto applications. Recent reports highlight strong growth in this sector.
Neobanks have clearly emerged due to market demand, and this narrative is positioned to become one of the fastest-growing pieces in the current cycle, sitting at the intersection of stablecoins, UX, international payments, and institutional capital.
4. Notable Projects in the Neobank Narrative
4.1 Avici
$AVICI is a self-custody Neobank token allowing users to store, transact, and use digital assets in a unified application.
Avici has had impressive growth since listing on MEXC
$AVICI runs on a full-stack platform developed by MetaDAO and integrates BestPath routing technology to reduce blockchain complexity. Users do not need seed phrases, gas tokens, or manual asset transfers across networks. Unlike traditional crypto wallets, $AVICI adds Neobank features: fiat on/off-ramp, on-chain yield, cross-chain transfers, and Visa card spending. The project stands out for self-custody, encrypted private keys stored on the device. MetaDAO also provides on/off-ramps in multiple countries, supporting UPI, SEPA, ACH, and PIX. Legally, $AVICI partners with licensed financial institutions to handle KYC, card issuance, and fiat services while ensuring users retain full asset control.
4.2 Gnosis
$GNO is the token of Gnosis Safe, a multisig asset management platform helping individuals and organizations secure crypto assets. Gnosis Safe runs on Ethereum with audited smart contracts and integrates DeFi, DAO, and NFT services. Users manage multisig assets while maintaining self-custody without relying on third parties. Gnosis Safe supports staking, yield farming, spending, and cross-chain transfers via the Gnosis ecosystem. Legally, Gnosis Safe complies with local regulations for businesses and DAOs while never storing private keys, ensuring users maintain full control. It is widely trusted by organizations and DAOs as a secure wallet.
4.3 VPay by Virtuals
$VPay is a Neobank project combining crypto and fiat payments, enabling unified asset management, transactions, and usage. VPay runs on a full-stack platform by Virtuals with BestPath routing to reduce blockchain complexity. Users do not need seed phrases, gas tokens, or manual cross-network transfers. Unlike traditional crypto wallets, VPay integrates Neobank functions: fiat on/off-ramp, on-chain yield, cross-chain transfers, and Visa/Mastercard spending. The project features self-custody with encrypted private keys stored on the device. VPay supports global on/off-ramps compatible with UPI, SEPA, ACH, and PIX for smooth fiat-crypto conversion. Legally, VPay partners with licensed banks and payment institutions for KYC, card issuance, and fiat services, while users retain full asset control. The project is currently in beta.
4.4 Tria
Tria is a self-custody Neobank allowing users to manage, transact, and use digital assets in one app. Tria runs on its full-stack infrastructure with BestPath routing to reduce blockchain complexity. Users do not need seed phrases, gas tokens, or manual cross-network transfers.
Unlike traditional wallets, Tria integrates Neobank functions: fiat on/off-ramp, on-chain yield, cross-chain transfers, and Visa card spending. The project stands out for self-custody, with private keys encrypted and stored directly on the device. It offers on/off-ramps in over 100 countries, supporting UPI, SEPA, ACH, and PIX for fast and consistent fiat-crypto conversion. Legally, Tria partners with licensed financial institutions for KYC, card issuance, and fiat services while users retain full control. The project is currently in beta.
4.5 UR Global
UR Global is a Web3 Neobank founded by Mantle in strategic partnership with Ethena (USDe). Fully launched in October 2025, it serves over 45 countries through iOS, Android, and Web apps. Its goal is a super app where users can receive salaries, save, transfer funds globally, and spend, all on blockchain. UR Global differentiates itself by integrating DeFi and TradFi. Its self-custody wallet uses MPC and fingerprint security, giving users full control without remembering seed phrases.
USDe by Ethena is the primary stablecoin, providing approximately 5% APY automatically. UR also supports USDC and USDT for free, high-liquidity fiat-crypto conversions via Mantle’s infrastructure. For payments, UR Global offers extensive cross-border solutions, including IBAN, SEPA, SWIFT, and SIC, enabling near-instant transfers with low costs (0-0.5%). Yield layers are optimized for ordinary users, with USDe rewards credited weekly without manual staking.
5. Conclusion
The Neobank narrative is one of Web3’s most transformative trends. Unlike hype-driven memecoins or attention-fi, Neobanks are built on solid fundamentals: rising stablecoins, demand for cross-border transfers, institutional inflows, and major UX gaps in crypto.
Web3 Neobanks go beyond apps, redefining global finance. Leading projects are attracting investors and could become blue-chip applications in 2025–2026. With stablecoin growth, account abstraction, and asset tokenization, Neobanks are poised to bridge traditional banks and blockchain, onboarding millions of new users.
Disclaimer This content does not constitute investment, tax, legal, financial, or accounting advice. MEXC provides this information for educational purposes only. Always do your own research, understand the risks, and invest responsibly.
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