From Ledger to Morpho, crypto means a complete overhaul of the banking backend

The crypto ecosystem is quietly rewriting the fundamental logic of traditional finance. This is not just about upgrading wallet interfaces or the emergence of various payment cards, but a fundamental rethinking of the “essence of banking”—how to rebuild the backend architecture of banks using stablecoins and public blockchain technology, enabling funds to circulate faster on the chain. This means that future “banks” may no longer be monopolized by centralized institutions but composed of a combination of open DeFi protocols.

Evolution of Self-Custody and Institutional Wallets—From Ledger to Diverse Storage Solutions

Fund storage is the starting point of all financial activities. From early personal self-custody solutions represented by Ledger hardware wallets to the emergence of institutional-grade wallets like Fireblocks and Anchorage, the custody system for crypto assets is becoming more layered and sophisticated. Ledger’s success reflects users’ demand for self-control, while the rise of institutional wallets indicates that large funds prioritize security, convenience, and compliance. This evolutionary path demonstrates the migration of crypto assets from niche collectibles to mainstream assets.

New Competitive Dimensions Behind Crypto Card Commercialization

Crypto payment cards have evolved from rare tools to mass-market consumer products. However, the real dividing line in market competition is not the card design itself but how to drive transaction volume through payment scenarios, retain users, and build ecosystem stickiness. This means that a good neobank needs to turn cards into tools that enhance user engagement, not just payment channels. Every transaction is a contest for users’ time and funds.

Speed of Fund Flows as a New Competitive Rule

If traditional banks focus on interest margins and bad debt rates, the competitive focus for crypto neobanks is “fund flow speed”—the cycle of capital circulation within the system. Making transaction platforms and yield products serve as high-speed entry points, allowing users’ funds to flow quickly and switch flexibly, is the core driver of user attraction. This is no longer just about deposits and payments but about creating an ecosystem where funds circulate efficiently.

Two Paths in Lending Innovation and the “Holy Grail” Dilemma

Lending is the soul of finance and the highest stage of a neobank ecosystem. Currently, lending innovation presents two parallel directions: one is permissionless over-collateralized lending represented by Aave, Morpho, and Sky, which reduces credit costs through transparent smart contracts and automation; the other is permissioned institutional lending exemplified by Maple and Goldfinch, emphasizing risk control and manual data review. However, the true “Holy Grail”—non-overcollateralized microloans for ordinary consumers—remains unsolved. This indicates that there is still a vast blue ocean market in crypto finance waiting to be explored.