Bankless How Crypto Neobanks Work: Frax, Cards, and Visa’s Role | Sam Kazemian
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Oct 28, 2025 Sam Kazemian, co-founder of Frax and a pioneer in stablecoins, dives into the innovative world of crypto neobanks. He discusses the two-coin model of FraxUSD and sFRAX USD, highlighting their roles in payments and savings. Sam explains how neobank cards could potentially sidestep the traditional Visa system, making stablecoins more mainstream. He also shares insights on institutional reliability and the importance of metrics like card acceptance and bank deposits, painting a vibrant picture of a future on-chain economy.
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Neobanks As The Bridge To On‑Chain Dollars
- Crypto neobanks are the bridge between traditional finance and on-chain stablecoins, smoothing on/off ramps for users and institutions.
- Branded stablecoins act as hidden on-ramps that bring users' net worth on-chain without forcing exchanges through CEXs.
Short Tail Vs Long Tail Stablecoin Strategies
- Different stablecoins will pursue different go‑to‑market plays: gift-card style branded coins or broad digital dollars for payments and deposits.
- Frax aims to be a widely accepted digital dollar while letting neobanks and cards handle consumer UX and distribution.
Offer Interoperable Issuance Pipes
- Build interoperable issuance infrastructure so new branded stablecoins can plug into multiple banks and chains without reinventing pipes.
- Connect with other issuance platforms to maximize distribution and reduce fragmentation costs for issuers.