Deobanks connect the world of cryptocurrencies with everyday life, making digital assets intuitive, spendable, and ready for mass adoption through convenient tools.

Published

CoinGape Staff

April 23, 2025, 08:09 UTC

Cryptocurrencies open up a multitude of opportunities, and that potential has not diminished over the past fifteen years. Peer-to-peer transactions, decentralized banking, and a new path to financial independence have been among the promises that cryptocurrencies brought when they finally found their audience. Despite some fundamental issues, they enchant hundreds of millions of people.

Managing multiple coins on various platforms, non-obvious wallet addresses, and frequent changes in network fees are all apparent issues that need to be addressed. For sellers, the problems are compounded. Ask yourself: how many local cafes, supermarkets, or transport companies accept Bitcoin or Ethereum? Despite the revolutionary potential of cryptocurrencies, people still prefer to pay with their phone or card rather than using blockchain-based payments. Thus, the path to widespread adoption and seamless usability is still far from complete.

The last hurdles to sustainable and widespread adoption of cryptocurrencies are their intuitiveness, accessibility, and ease of use. And this is where deobanks come into play, dear reader. Decentralized on-chain banks are a new generation of financial institutions aiming to bridge the gap between digital assets and real expenditures. Allow us to explain.

The gap between on-chain assets and everyday life

Essentially, the problem lies in the mismatch between the on-chain world of cryptocurrencies and the off-chain reality of everyday transactions. While cryptocurrency advocates spread the word about decentralization and control, the existing infrastructure continues to force most people to convert their digital assets into fiat to make them usable.

This is how the "bottleneck" effect arises due to the persistent dependence on the traditional financial system. The small number of real sellers who directly accept (or do not accept) cryptocurrency for payment of goods and services reduces its practicality. This gap in the chain creates a reason for users to rely on centralized exchanges and withdrawal points with inflated fees, delays, and loss of control over their assets.

But this is not the end of the problem. Managing wallets can be complex and risky, especially when using centralized exchanges. Paradoxically, although holding one's own funds in a non-custodial wallet is safer than on a centralized exchange, people actually perceive trusting the latter as safer. Technical jargon, complex procedures, distrust, and confusion regarding custodial security and vulnerabilities create a significant barrier to access.

What distinguishes deobanks?

The emergence of decentralized on-chain banks, or deobanks for short, is significant. These new players are entering the scene as user-oriented and blockchain-native financial institutions designed to address the usability crisis. They are not necessarily blockchain banks; they represent a completely new approach based on usability that provides certainty in the uncertain future of cryptocurrencies.

The main mission of deobanks is to help transform the image of cryptocurrency from a speculative asset to easily spendable money. To achieve this, they provide tools and services specifically designed to make cryptocurrency accessible and practical for everyday use, such as:

  • Support for stablecoins:Stable purchasing power through stablecoins is a key feature, as these cryptocurrencies pegged to fiat currency assets (typically the US dollar) provide a predictable and reliable unit of measurement for value, eliminating volatility.

  • Custodial and non-custodial options:Deobanks give users the choice of how to store their funds.

  • Integrations for spending:Seamless, instant purchases without third-party custodians and costly intermediaries are a necessity.

  • Digital and physical cards: Deobanks link user wallets with cards, allowing them to spend their cryptocurrency anywhere cards are accepted.

WeFi, the world's first deobank, has set out to make cryptocurrency usable by everyone everywhere, providing them even more ways to store and spend their digital assets. We asked Maxim Sakharov, CEO and co-founder of WeFi Group: "Why is making cryptocurrency usable for everyday life such a priority for WeFi, and what needs to change in the current system for this to be possible?"

Maxim explained that "everyone sees that the current system is fragmented, complex, and intimidating. It's time for seamless, intuitive, and secure ecosystems that will facilitate mass adoption. To make cryptocurrency usable by everyone everywhere, we need to push for a shift in thinking and a technological shift in how we think about cryptocurrency and interact with it."

How stablecoins make spending predictable

Indeed, most cryptocurrencies like Bitcoin and Ethereum are too volatile for everyday transactions. Imagine you are a seller; you accept bitcoins for a product worth $1000, and the next day that Bitcoin drops by 10%. Now you have BTC worth $900, and your margin is gone. You instantly remember why you didn’t want to accept BTC in the first place. You have two choices: either sell at a loss because you need cash now or wait for the Bitcoin price to rise again. You feel either frustration or resentment.

This problem is being addressed by stablecoins like USDC/USDT, which offer a price-stable substitute to ensure sustainable purchasing power. Deobanks use these stablecoins and their purchasing power, similar to that of the US dollar, to bypass outdated traditional banking systems and facilitate simple conversions for easy purchases from wallets and crypto cards.

Stablecoins are actually programmable assets that allow for automated and more intelligent payments. Deobanks can use this programmability to provide features such as conditional transfers, combined spending, and recurring payments, enhancing efficiency and convenience.

Crypto cards and non-custodial wallets

When we talk about mass adoption, a true breakthrough is likely crypto cards. Billions of people use debit cards daily at a wide range of retailers. The only difference here is that the balance is represented in cryptocurrency rather than fiat currency like the US dollar or euro.

What distinguishes crypto cards issued by deobanks is their direct link to non-custodial wallets. This eliminates the need to deposit funds with a third-party custodian. In short: full control, easy connection, simple spending, no centralization.

But that's not all. Deobanks are mobile-first, integrated with Apple Pay, Google Pay, and QR systems, allowing billions of smartphone users to incorporate cryptocurrency into their daily lives. WeFi even developed an interesting integration with Telegram, where over a billion active users exchange messages, files, and experiences in a secure and encrypted environment every month.

WeFi makes blockchain a part of everyday life

WeFi is a prime example of a deobank that combines these tools into a seamless experience with support for stablecoins, non-custodial wallets, and crypto cards.

Users can:

  • Spend cryptocurrency without conversion issues

  • Maintain control over the wallet without sacrificing usability

  • Choose between self-custody and custodial storage

  • Use cryptocurrency like regular money without thinking

The success of UX lies in making technology invisible, allowing users to focus on the value it provides rather than the complex infrastructure beneath. We asked WeFi's Head of Growth, Agne Linge, about their long-term vision for making WeFi not just convenient for cryptocurrency but convenient for people. How do they envision the integration of cryptocurrency into everyday life in five years?

She explained: "Integrating cryptocurrency into the fabric of our daily lives over the next five years requires us to make it as intuitive as existing payment methods. Users should be able to transact with cryptocurrency easily and confidently. Why would they want to do this? Well, it's faster, cheaper, more democratic, offers better returns, and opens up an exciting new world of decentralized finance opportunities."

When cryptocurrency becomes the norm

To address the usability gap that has hindered widespread adoption, deobanks strive to combine support for stablecoins, non-custodial wallets, and crypto cards into a simple and familiar experience. Card and QR code payments will also help change user mindsets and dispel misconceptions about the complexity and futuristic nature of these platforms.

Cryptocurrency becomes mainstream not when people invest in it, but when they actually use it.

Deobanks like WeFi make this possible, one transaction at a time.

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CoinGape Staff CoinGape is an experienced team of full-time writers and editors covering global news around the clock and presenting it as facts, not opinions. CoinGape's authors and reporters contributed to this article.

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