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Phase one of crypto neobanks included Outlet Finance, Donut, Linus and a few others. The yield came from a mix of defi lending, centralized crypto lenders, token incentives and subsidized protocols like Anchor on Terra. Terra did not directly power all of them, but its collapse exposed how fragile and interconnected the crypto market structure was. The contagion hit Celsius, Voyager, Blockfi and Genesis, ultimately impacting all crypto consumer products. Phase two is what we are seeing today. The source of yield is now a combination of tbills, stablecoins and defi vaults, and the game has become enabling anyone in the world to access the US dollar. But I believe the category is already becoming crowded, and most will struggle to survive. The winners today will not be the winners of phase three, which I believe is already underway. Phase three will be a combo of generalist neobanks (likely incumbents or brands/creators with distribution) and highly industry specific neobanks, but the biggest opportunity will be whoever cracks onchain credit at scale. Imagine being able to lend someone in the Global South $100, then $250 a day, and build an entirely new credit scoring system based on how they repay. The wedge can be simple sign up and instantly access capital through a card. Repay it, build your score and unlock larger amounts. Over time that relationship expands into banking, payments, transfers, larger loans, mortgages, insurance and everything else. Anyone can build product that moves money around but I believe the moat goes deeper into underwriting, identity, fraud, and collections Crypto will shine when we can create something net new rather than recreating finance onchain. And I believe we are still scratching the surface. If you are building in this space hit my DMs ASAP.

We just launched GOFR — the Galaxy Onchain Financing Rate. For the first time, institutions can access a single, continuously rebalanced rate across Aave, Morpho, Spark, and more. Dynamically optimized in real time and rebalanced across DeFi venues, a single Galaxy Rate.

S&P Global is paying attention to DeFi vaults. Key takeaways from its latest primer: • Vaults are becoming the on-chain equivalent of managed funds. • They improve operational efficiency but introduce new risk considerations. • While crypto-native today, they're poised to become *core infrastructure* for tokenized real-world assets and institutional capital.

Onchain markets need a scalable, unsecured lending product. The vast majority of the world we see today was built on credit The most productive kind is credit issued against future cash flows, or rather things that don't exist now but can exist with the help of a loan Maple v1 resigned to difficulties with underwriting loans to HFs and MMs, Goldfinch knowingly jumped into a world of adverse selection and got burned Won't be easy, but whoever unlocks this will transform what onchain capital markets can offer the world