How Crypto Neobanks Work: Frax, Cards, and Visa’s Role | Sam Kazemian

In this episode of Bankless, Sam Kazemian from Frax discusses the emerging trend of neobanking in the crypto space. He defines neobanks as fintech wrappers around traditional banks, offering better UX and easier transactions. The conversation explores how stablecoins and regulatory developments like the Genius Act are pivotal in bridging the gap between traditional finance and DeFi. Sam explains Frax's role in this ecosystem, not as a neobank itself, but as a provider of the underlying infrastructure, including the FraxUSD stablecoin, for neobanks like EtherFi. The discussion also covers the potential for stablecoins to disrupt traditional payment systems like Visa, the importance of distinguishing between "stablecoin gift cards" and "real digital dollars," and the critical factors for stablecoin success: alignment, liquidity, and integration with key institutions.