071Labs Report Reveals Web3 Neobanks Face Crucial On-Chain Connectivity Challenge
Written by Ohris M. Greyoon, Blockchain & Crypto Expert
Source: Coinmarketcap
Updated: Dec 31 2025- Foundational Stage Analysis: The 071Labs report indicates that current Web3 neobanks are still in a foundational stage, with over 85% of platforms focusing on payment functionalities, which limits the integration of cryptocurrencies with traditional financial systems and reduces their market impact.
- Importance of On-Chain Connectivity: The report emphasizes that the future success of Web3 neobanks will hinge on robust on-chain connectivity to enable direct access to decentralized finance protocols, facilitating multi-chain operations and smart contract interactions, thereby enhancing user experience and market competitiveness.
- User Entry Barriers: By simplifying user interfaces, Web3 neobanks can lower entry barriers for mainstream users, as 68% of potential users cite technical complexity as a primary obstacle, a strategy that could accelerate cryptocurrency adoption.
- Regulatory Compliance Advantage: As global regulatory frameworks for digital assets evolve, compliant Web3 neobanks can offer insured deposits and legal protections, providing them with a significant edge in attracting both institutional and retail investors.
About the author
Ohris M. Greyoon
Ohris M. Greyoon holds a Master’s in Computer Science from MIT and has 10 years of experience in blockchain technology and cryptocurrency markets. A pioneer in decentralized finance (DeFi) analysis, he leads Intellectia’s Crypto News, offering cutting-edge insights into digital assets.
