Evolving into a comprehensive financial service amid the proliferation of stablecoinsโฆ "We must break free from reliance on incentives."
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071 Labs concluded that the convergence of stablecoin proliferation and the development of on-chain financial infrastructure is making integrated financial experiences centered around blockchain wallets a reality. This suggests that an ecosystem is being built where payments, deposits, remittances, and investments are all handled on a single platform.
In particular, it noted that global fintech companies and payment network companies are actively incorporating stablecoins into their settlement and payment infrastructure. 071Labs stated, "The trend of digital assets no longer remaining speculative assets but rather being incorporated into the real-world financial system is accelerating."
The report presented "user experience-centered on-chain financial abstraction" as the core value of Web3 neobanks. It explained that while blockchain wallet-based, it should offer a UI/UX similar to existing banking applications, while complex processes like on-chain swaps, settlements, and on/off ramps should be handled in the backend, allowing users to seamlessly utilize the on-chain financial environment. This would enable a structure where financial activities, from payment to investment and back to actual use, can circulate within a single platform, clearly differentiating it from existing financial services.
However, 071Labs noted that Web3 neobanks are still in their early stages and face clear challenges. While many projects currently rely on incentive-based user acquisition strategies, such as fee reductions and rewards, it remains uncertain whether this subsidy competition will lead to a sustainable growth model.
Furthermore, the analysis concluded that simple payment functionality alone would be insufficient to differentiate itself from existing Web2 neobanks. 071Labs emphasized, "A strategic direction is needed to expand the on-chain financial experience beyond payments."
071 Labs concluded that the future competitiveness of Web3 neobanks ultimately hinges on seamlessly connecting on-chain assets with real-world finance and building an integrated financial ecosystem centered on user experience. In particular, as on- and off-ramps integration and connectivity between financial functions strengthen, the role of Web3 neobanks in the digital financial transformation is expected to grow.
Joohoon Choi joohoon@blockstreet.co.kr
