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US Regulatory Clarity, Tempo Testnet, Tezos, Daylight, and Money Moves Fast EP 13 https://t.co/sf6GX4UOex

2025 could be the breakout year for crypto neobanks.

Clearer regulations have opened the door to a $2T+ market.

Here’s a breakdown of the sector and who’s best positioned.

THE NEOBANK MARKET GROWTH

The neobank market has exploded over the last decade. By 2024, digital-only banks had attracted more than 1.3 billion users worldwide. This growth is driven by what people actually want: faster onboarding, mobile-first banking, and lower fees.

TWO TYPES OF NEOBANKS

There are basically two approaches an institution can take: building a full-stack neobank or a front-end-focused one.

A full-stack neobank (like Varo) has its own banking license and operates independently. On the other hand, a front-end-focused neobank (like Revolut) doesn't have a banking license and partners with traditional banks to provide its services.

Note that Neobanks are categorized as financial institutions rather than banks, so they don't follow the same regulations as traditional banks. They don't need a federal or state banking lice