⚡️JUST IN: 🇺🇸 S&P 500 closes above 6,909 for the first time ever.

‼️ RUSSIA MOVES TO LEGALIZE DOMESTIC CRYPTO DEALS FOR RETAIL BUYERS!

Russia's central bank has proposed a new regulatory framework to legalize domestic cryptocurrency transactions for retail investors.

This marks a reversal from its earlier stance advocating a ban in early 2022.

💰 FORMER FTX US PRESIDENT RAISES $35M FOR TRADFI PERPETUALS EXCHANGE

Former FTX US president Brett Harrison has raised $35 million for his startup, Architect Financial Technologies.

The startup is developing AX - a regulated exchange for perpetual futures tied to traditional assets like equities and foreign exchange, using crypto-inspired market designs.

👀 JUST IN: ARTHUR HAYES SENDS MORE $ETH TO BINANCE

Arthur Hayes sent 682 ETH (~$2M) to Binance a few minutes ago.

Notably, this follows a similar sale of ETH from last week. If patterns repeat, the proceeds from the ETH sale may likely be used to purchase DeFi tokens such as $ENA, $PENDLE and $ETHFI.

‼️ ALERT: POLYMARKET HIT BY THIRD-PARTY AUTH VULNERABILITY

Polymarket has confirmed a security breach impacting a limited number of user accounts.

The exploit, which saw user balances being drained despite having two-factor authentication enabled, was attributed to a vulnerability in a third-party authentication provider. Speculation points to Magic Labs, which handles email-based sign-ups for non-custodial Ethereum wallets. The issue has since been resolved.

🔽 TRUMP’S WLFI ENDS 2025 DOWN 40%

World Liberty Financial peaked around $0.25 in September and now trades around $0.13, ending the year deep in the red despite early hype tied to the Trump family and Donald Trump.

🏦 Onchain Neobanks Are Reaching Bank-Scale AUM

TLDR;
Crypto Neobanks are rapidly reaching AUMs rivaling mid-sized banks without branches, balance sheets, or back offices.

Fully onchain and globally accessible, these protocols merge banks, wallets, and DeFi into a single interface, creating a new financial layer running at internet speed, challenging decades of banking norms.

💵 The Problem With Traditional Banking

Modern finance still runs on legacy rails that no longer match how people earn or move money.

> High fees driven by layers of intermediaries

> Deposits treated as bank liabilities, not user-owned assets

> Limited access for global users, freelancers, and the “credit-invisible”

> Risk is socialized to users while profits stay with banks

💳 Even Web2 neobanks:
> Rely on partner banks
> Operate under fractional-reserve models

💱Banking Meets DeFi

Crypto neobanks rebuild banking using blockchain infrastructure.

❓ What they are:

+ Non-custodial bank alternatives, not deposit-taking institutions

+ Built on public blockchains with transparent, onchain settlement

+ A single app to save, earn, spend, and borrow using crypto and stablecoins

🤔Why this matters:

+ No custody means lower operational overhead

+ Blockchain rails replace expensive financial intermediaries

+ Users retain full control over their assets

In short, they offer everything a bank does but without being a bank.

🥇Top Features of Crypto Neobanks

Asset Control: Self-custodial or multisig wallets keep users in full control with no freezes and no rehypothecation.

Spend Without Selling: Pay or borrow against crypto without liquidating it.

Native Yield: Idle balances earn built-in DeFi yield, often 5–12%.

Low-Cost Payments: Near-zero-cost transfers and global card acceptance.

Whole-Portfolio Credit: Borrow based on total onchain assets, not credit scores.

⚠️Risks and Trade-Offs
Crypto neobanks are not risk-free:

- Self-custody risk: User error or wallet exploits can lead to permanent loss

- Asset volatility: Non-USD balances can fluctuate sharply

- Regulatory risk: Rules vary widely across jurisdictions

The neobanking market hit $148.9B in 2024 and is on track to reach $4.4T by 2034. As finance moves onchain, crypto neobanks are positioned to capture a meaningful share of that growth.