How Crypto Neobanks Make It Easier to Earn Passive Income - Ep. 930
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I mean, I think the big difference, the one if you could say, like, what is
the dividing line between this whatever you call it, DeFi bank, Cryptoneo bank, and a normal bank is is custody. So crypto alternatives do not take custody of user assets, which the reason that's important is it means nobody can come in and just take all your money. And the level of transparency is extreme compared to anything that a traditional bank would provide. You put in a dollar, you know exactly where that dollar is.
Hi, everyone. Welcome to Unchained, your no hype resource for all things crypto. I'm your host, Laura Shin. Mantle is pioneering blockchain for banking, a revolutionary new category at the intersection of TradFi and Web3. Follow mantleofficial to learn more. Binance is the world's number one crypto exchange, trusted by over two ninety million users. With industry leading liquidity, security, and a wide range of digital asset products, Binance is the place to buy, sell, trade, and earn crypto. Download Binance today to get started. Today's topic is crypto neobanks. Here to discuss are Itamar Le
Great meeting. I love you for having me.
So this year has seen so many different sectors of crypto just take off. It feels like there's kind of these little mini gold rushes happening everywhere, obviously, in stablecoins, in perps, in debts, even maybe everything apps. And we're also seeing a big rush in the neobank space. So for people who don't spend their whole life on crypto Twitter, you may not know that there is many tier lists going around ranking these crypto neobanks. But before we get into all that, why don't we just make sure everyone understands even what we're talking about? So, Mike, can you explain what a crypto neoba
Yeah. Basically, think of it as a self custodial version of something like a Revolut or NewBank or Chime. So, neobanks have expanded substantially over the last fifteen or so years and have grown to become this massive forest, dollars 170,000,000,000 space, about a 100 times larger than DeFi. But they're fully custodial and suffer from a lot of the same challenges that trad fi banking suffers from. What EtherFi and I guess Ready and other players in the space are building are end to end crypto native alternative to these neobank products that allow you to save, earn, spend, borrow all in a non
Isamar, do you want to expound a little bit on how a crypto neobanks a a crypto neobank differs from any old regular non crypto neobank, like, you know, one of the fintech options that Mike mentioned?
So I think the the starting point that probably in your bank is too broad of a of a word. You have, like, 50,000 banks, I think, in the world. Most of them retail. I think remittance fits into that. Savings, as Mike mentioned, payment, merchant payment, there's so much into that. I think for us the view is once you start with a different stack, let's say, so stable coin and self custody, you can can do things that traditional neobank will struggle to do or will do in a much slower way. But I think at the end, the the perf I really love my definition. We use the same, which is an on chain alter
Okay. So let's also now talk about the origins of crypto banks. Mike, I know people often talk about EtherFi as one of the originals. So why don't you explain how EtherFi got started?
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