An executive close to MetaMask, which first made its name as an Ethereum wallet, recently described the brand to me as a neobank—a term popularized by fintech players like Revolut and Chime. Soon after, I put this notion to JP Richardson, a Bitcoin OG who founded the elegant Exodus wallet. He just nodded, and recounted how his own company has added a card service that lets users pay anywhere using the Visa network.

This all represents a major evolution from the first decade of wallet development. Back then, devs built their products for specific tokens, and it was big news if they added other ones. Today, features like fiat off-ramps, physical debit cards, and access to networks like Visa are table stakes for any wallet to be competitive. According to Nitya Subramanian, the founder of wallet infrastructure startup Para, the wallet makers are competing to own both distribution and the consumer relationship—right alongside exchanges, fintechs, and banks.

“Non-custodial wallets, given the relative ease of expanding access to onchain instruments across ecosystems, are uncommonly well-positioned to do this quickly,” said Subramanian, who expressed optimism that the likes of MetaMask and Exodus will become the primary gateway to the financial system for a growing number of people. 

This feels like a bold claim, though as Richardson told me, recent developments are making it more viable than ever for wallet makers to compete with banks and neobanks. The most important of these is the ability to build a proper identity layer into decentralized wallets using technology like zero-knowledge proofs. Being able to verify ID and carry out KYC, while still preserving user privacy, is a compelling pitch for wallet makers.

Still, it’s an open question whether MetaMask and Exodus will emerge as serious players in the brutally competitive banking space—or, at a time when Wall Street is muscling in on all aspects of crypto, these iconic wallets end up as acquisition targets for the likes of JPMorgan or Robinhood.

Finally, on the topic of blockchain’s broader tent, crypto’s most famous convert, President Donald Trump, sat down last week with Fortune Editor-in-Chief Alyson Shontell. The conversation is the subject of a just-published feature, “An hour in the Oval with America’s CEO-in-Chief,” which you can READ HERE.

Jeff John Roberts
jeff.roberts@fortune.com
@jeffjohnroberts

DECENTRALIZED NEWS

OKX is reevaluating participation in Consensus after the crypto conference held its official party at a club featuring “lap dancers, pole dancers and servers dressed in lingerie." (FT) 

The Senate Banking Committee finally passed a version of the Clarity Act, confirming the crypto lobby may have the upper hand on banks in DC. Polymarket bettors gave the key legislation a 70% chance of passing this year. (Bloomberg)

JPMorgan Chase analysts noted Bitcoin has out-performed Ethereum and alts since 2023, and that the trend is likely to continue unless there are big improvements in terms of network activity and DeFi. (The Block)

Bitcoin prices slumped below $77,000 for the first time since May 1 in response to discouraging macro news related to oil prices and Iran. (Bloomberg) 

South Korean banking giant Hana Bank has bought a $670 million stake in Dunamu, which operates the country’s largest crypto exchange Upbit. (WSJ)

MAIN CHARACTER OF THE WEEK

Ken Griffin, the most formidable trader in U.S. finance right now, says he saw AI agents at his hedge fund Citadel complete work that used to require a PhD in finance.

MEME O' THE MOMENT

Farewell to an era, courtesy of retiring journalist Tim Copeland.