071Labs: "Web3 Neobanks Still Incomplete...On-chain Connectivity Is the Key"

071Labs, a blockchain incubation and consulting firm, stated in its report, “Web3 Neobanks: Beyond Payments, Towards On-Chain,” that “Today’s Web3 Neobanks are still in an incomplete stage, and are closer to the groundwork stage of first laying the groundwork for a card-based payment network. However, as long as attempts to connect cryptocurrencies, the real economy, and traditional finance continue, the key to success for Web3 Neobanks lies in ‘on-chain connectivity.’” The report continued, “Web3 Neobanks can simplify the entry barriers for existing on-chain dApps. By simply making a deposit, users can access on-chain products just like with existing financial apps. As prediction markets and real asset tokenization (RWA) markets become more institutionalized in the future, Web3 Neobanks will have a monopoly as a gateway that provides both regulatory compliance and accessibility.”