On-chain connectivity is key for Web3 neobanks, says 071Labs report

Blockchain incubation and consulting firm 071Labs has diagnosed the current state of Web3 neobanks as incomplete, according to a recent report. The firm characterized the sector as being in a foundational stage, primarily focused on establishing card-based payment networks. However, the report asserts that as attempts to link cryptocurrencies with the real economy and traditional finance persist, the decisive factor for Web3 neobanks will be their on-chain connectivity. 071Labs added that these platforms can simplify the entry barrier for existing on-chain dApps, enabling users to access on-chain products with the ease of traditional financial apps simply by making a deposit. Looking ahead, the report suggests that as prediction markets and real-world asset (RWA) tokenization gain institutional acceptance, Web3 neobanks could secure an exclusive position as gateways offering both regulatory compliance and accessibility.