HTX Ventures' latest research report interprets "yield-generating dollars": How new crypto banks are reshaping the global deposit landscape

Recently, HTX Ventures, the global investment division of Huobi HTX, released its latest research report ++“The Rise of Yield-Bearing Currency: How Crypto Neobanks Are Challenging the Traditional Banking Model”++. The report suggests that the global financial system is at the starting point of a structural reorganization—on one side is the old system centered around $103 trillion in customer deposits and banking licenses, and on the other side is the new system centered around stablecoins, wallets, custody, and on-chain yield protocols. As dollar assets begin to exist in "on-chain form" and simultaneously possess holding, liquidity, and yield capabilities, the deposit model that traditional banks rely on is facing a historic repricing. The core driving force behind this reorganization is that stablecoins are transitioning from being a "payment tool" to a "yield-bearing dollar account," and the financial form that supports this transition is the "crypto neobank."

Two Generations of Digital Banks: From Experience Upgrade to Underlying Reconstruction

The evolution of the digital banking industry has gone through two waves. The first wave, represented by fintech neobanks such as Chime, Nubank, Revolut, and Monzo in the 2010s, changed the "usage" of banks. However, no matter how smooth the front end is, the back-end fund clearing still relies on traditional banking systems like ACH and SWIFT, essentially adding a layer of user experience on top of the traditional banking system.

What is truly structurally significant is the emergence of crypto neobanks represented by Coinbase, Cash App, Robinhood, and Crypto.com. The changes in this phase touch upon the definition of financial assets and the way they are held: native custody accounts replace liability records on bank ledgers, stablecoin payment networks bypass traditional wire transfer cycles, and integrated yield products directly transmit the real returns of underlying assets to users. It no longer changes "how banks are used," but rather "how money exists, flows, and generates yield."

Crypto neobanks are not a clearly defined type of institution but a functional form. Among them, leading crypto exchanges are actively evolving into major participants in this space through earning products, stablecoin services, and on-chain wealth management products.

From Transaction Medium to Yield-Bearing Asset: The Functional Transition of Stablecoins

The establishment of crypto neobanks is predicated on a fundamental change in the role of stablecoins. As of March 2026, the global market value of stablecoins has surpassed $319 billion, with U.S. Treasury Secretary Yellen predicting that this figure could reach $3.7 trillion by the end of this decade. However, what is more noteworthy is not the total growth but the functional positioning of stablecoins. In the early stages, stablecoins primarily served three functions: settlement assets between exchanges, dollar-denominated mediums for on-chain transactions, and "dollar substitutes" within the crypto ecosystem. However, entering 2024, more and more users are no longer just "using stablecoins," but are beginning to "hold stablecoins," gradually making them a part of asset allocation and cash management.

Driving this transition are dual changes in the macro interest rate environment and product forms. Compliant stablecoin issuers allocate reserves to short-term U.S. Treasury bonds and reverse repos, naturally connecting the entire system to U.S. benchmark interest rates; meanwhile, platforms are beginning to package complex underlying asset allocations into simple "yield-bearing accounts," transforming the user experience from "participating in DeFi protocols" to "putting dollars into an account that can be withdrawn at any time and also generates yield."

Restructuring of Yield Distribution: From Bank Retention to User Outflow

The most critical change occurs in the method of yield distribution. Traditional banks retain interest margins within their balance sheets by absorbing low-cost deposits and allocating high-yield assets, allowing users to share only a small portion of the profits. In the stablecoin and on-chain yield systems, the yields that were originally absorbed by the banking system are now being transmitted to end holders in a more direct manner, with annual yields generally reaching between 3% to 8%.

This change is clearly reflected in the earning products of leading exchanges. As an important participant in the crypto neobank space, Huobi HTX's practices in earning products exemplify the typical form of "yield-bearing dollars" in the exchange environment: on the liquidity level, the platform supports funds being deposited and withdrawn at any time, differing from traditional banks' long-term fixed deposits; on the yield level, Huobi HTX has achieved hourly compounding interest, significantly improving the utilization efficiency of long-tail funds compared to traditional banks' monthly or quarterly interest calculations; on the product level, simple earning, structured products, and on-chain products cover over 300 cryptocurrencies and provide structured derivatives like "dual currency win" to meet the hedging needs of professional funds. HTX Ventures believes that this combination of "high-frequency compounding + flexible liquidity + diverse asset supply" is one of the core competitive advantages that distinguish crypto neobanks from traditional savings products.

Three Possible Paths for Future Evolution

Where will this game of underlying currency forms and business models ultimately lead? The report outlines three possible paths: crypto neobanks achieve comprehensive victory, with stablecoins dominating the global payment and savings markets; traditional banks successfully counterattack through tokenized deposits (such as JPMorgan's JPMD), relegating crypto infrastructure to a technical service layer for banks; or a hybrid financial stack ultimately takes shape—non-bank stablecoins and tokenized deposits coexist, traditional commercial banks retain their core position in credit creation, but the underlying core ledger and on-chain protocols are deeply integrated.

From the current regulatory dynamics and the speed of industry evolution, the third path appears to have the greatest practical possibility. The regulatory game surrounding the GENIUS Act, CLARITY Act, EU MiCA, and Hong Kong stablecoin regulations indicates that the "definition of currency" dispute will not end with one side's complete victory but will form a new multi-layered coexistence structure through institutional coordination.

Conclusion

The core of this transformation lies not in whether stablecoins can continue to grow, but in how the relationships between currency, deposits, yields, clearing, and regulation will be redefined. For crypto platforms, the outcome of competition depends not only on the level of yields but also on whether they can establish verifiable security boundaries and institutional trust beyond yields. The true winners will be those participants who can bridge the traditional financial world and the on-chain world.

From the high-frequency compounding and flexible liquidity of earning products to long-term investments and incubation of global crypto financial infrastructure, what Huobi HTX and HTX Ventures practice is precisely this role of a "bridge builder": finding a balance between compliance and innovation, allowing users to enjoy the efficiency and yields of the on-chain world while also obtaining the security boundaries and trust foundations provided by leading platforms.

About HTX Ventures

HTX Ventures is the global investment division of ++Huobi HTX++, integrating investment, incubation, and research to identify the best and brightest teams globally. As an industry pioneer, HTX Ventures has over 11 years of blockchain construction experience and excels at identifying cutting-edge technologies and emerging business models in the field. To drive growth within the blockchain ecosystem, we provide comprehensive support to projects, including financing, resources, and strategic advice.

HTX Ventures currently supports over 300 projects across multiple blockchain domains, with some high-quality projects already trading on Huobi HTX. Additionally, as one of the most active FOF funds, HTX Ventures invests in 30 top funds globally and collaborates with leading blockchain funds such as Polychain, Dragonfly, Bankless, Gitcoin, Figment, Nomad, Animoca, and Hack VC to jointly build the blockchain ecosystem. ++Visit us++.

For investment and collaboration inquiries, please feel free to contact ++VC@htx-inc.com++