🛣️Continuing Execution

A neobank requires a high capacity and persistent source of yields. It also requires functionality that induces users to retain their funds with the entity. The more functionality a neobank provides, the stickier the funds become. Funding arbitrage provides the first pillar of functionality, and can be supplemented with other sources of yield such as treasury bonds. The second pillar of functionality that every bank provides is payments: the ability to exchange money within the institution for goods and services.

Solana, with its fast block times and ultra-low transaction fees, provides the optimal blockchain settlement layer for payments. The yield earned from the strategies can be purposed toward providing points, rewards, and reimbursements not just for users but also merchants, creating the incentives that are needed to overcome the network effects of legacy payment rails.

The third pillar of functionality is access to real world assets, such as stocks and bonds. A Solana based neobank can provide a superior and most cost-efficient alternative to apps such as Robinhood. This is because tokenized securities, which will eventually be available through entities like BlackRock, can be purchased directly on the blockchain for fractions of a cent in transaction fees, without being subject to hidden taxes such as order flow being sold to Citadel.

Our ultimate goal is to onboard the next billion users into the digital financial ecosystem.