Crypto Wallet Companies Expand Services to Compete With Banks

Wallet developers are adding services that let users spend digital assets and verify identity without handing over private keys. MetaMask, originally known for Ethereum transactions, is now described by an executive close to the company as a neobank. Exodus founder JP Richardson said his firm has introduced a Visa-linked card that works at merchants worldwide.

Nitya Subramanian, founder of wallet infrastructure firm Para, said non-custodial wallets can expand access to on-chain financial products faster than exchanges or traditional banks. Features such as fiat conversion, physical debit cards, and network access have become standard requirements for wallet providers.

Zero-knowledge proofs are being used to add identity verification and KYC processes while keeping user data private. Richardson noted these tools make it more practical for wallets to offer services that banks and fintech firms currently provide.

It remains unclear whether MetaMask or Exodus will become major competitors in banking or whether larger financial institutions will acquire them. Subramanian expressed optimism that these wallets could serve as primary entry points to financial services for more users.