Skip to main content

What Is Web 3.0? (And Why Should Banks & Credit Unions Care?)

 


A new version of the web-based on blockchain technology — is being predicted and promoted. Even though the trend has vocal naysayers, elements of Web 3.0 are already in use, including by a new crop of disruptive nonbank competitors.

By Steve Cocheo, Executive Editor at The Financial Brand

If the term “Web 3.0” has crossed your radar, and you are wondering what it is and whether it’s worth starting another ulcer over, we have four words for you: Eco, Valora, Compound and TrueFi.

Eco, which promotes the fact that it is not a bank and not FDIC insured, offers accounts held in stablecoins that function as both spending and savings accounts, but with higher returns.

Valora is an app available through the App Store and Google Play that uses the blockchain to deliver a version of P2P services out of a mobile crypto wallet.

Compound describes itself as “an algorithmic, autonomous interest rate protocol built for developers, to unlock a universe of open financial applications.” Among the services using it is Compound Treasury, which promises a 4% annualized return with dollar deposits turned into stablecoins as well.

TrueFi is a marketplace lender offering unsecured loans for borrowers and an opportunity for people with funds to invest in loans to earn a higher return. TrueFi is a form of decentralized finance — “DeFi” — using stablecoins.

Numerous tech and crypto investors back these fledgling companies, all of which are doing business through some aspect of “Web 3.0,” also called “Web3.” One investor in common is Andreessen Horowitz.

The venture capital firm is investing heavily in crypto through a hedge fund. In late 2021 it launched a lobbying campaign in support of its idea of how the World Wide Web should evolve, and, along with it, many of the businesses and activities that tie into it — including financial services. This push so far includes issuing ten Web 3.0 principles for world leaders shaping the future of the web and publishing a major Web 3.0 white paper, “How to Win the Future: An Agenda for the Third Generation of the Internet.”

Regarding financial services, that paper states: “Our financial system needs to be revamped for fast payments. It also needs to be more inclusive; for instance, by improving access to credit through better credit scoring that incorporates more data sources. Web3 has demonstrated the potential of alternatives to the current system. Decentralized finance, or DeFi, is also supplying a wave of new infrastructure to support more sophisticated financial products…”

There’s more in the paper, but it’s far from the only voice in Washington promoting Web 3.0. Anti-bank rhetoric is part of it.

In congressional testimony on Web 3.0, Brian Brooks, former Acting Comptroller of the Currency, who liberalized treatment of crypto activities by national banks, said in part: “Do we believe a user-controlled decentralized internet is better than an internet largely controlled by five big companies? … Do we trust big banks more, or open-source software more, as a tool for maintaining ledgers of account and allocating credit and capital?” Brooks is now CEO of Bitfury Group, a supplier to the cryptocurrency business.



Clearly, both traditional financial institutions as well as neobanks and fintechs have to understand what Web 3.0 is and how it could develop. The following Q&A presents the basics of what is already becoming a very complicated new field.

Comments

Post a Comment

Please no profanity or political comments.

Popular posts from this blog

IRS Rules Turn ‘Simple’ Auto Loan Tax Break Into Compliance Challenge

  PLANO, Texas— A new federal tax deduction allowing consumers to deduct interest on qualifying auto loans is being billed as a borrower benefit, but newly issued regulations from the U.S. Department of the Treasury and the Internal Revenue Service show the program will impose significant compliance and reporting obligations on credit unions and other auto lenders. That’s the assessment of Brian Turner, president and chief economist with Meridian Economics, who said the rules governing the so-called auto loan interest deduction are “far more technical” than initially described and will require system and process changes for many finance providers, including credit unions active in indirect and direct auto lending. Deduction Comes With Detailed Conditions Brian Turner Under the proposed regulations, interest is deductible only if the loan and vehicle meet strict criteria. The vehicle must weigh less than 14,000 pounds, be designed for public road use, be newly placed in service by t...
Post a Comment
Read Complete Article HERE>»

What Gen Z Is Really Looking For In A Credit Union

  Gen Z’s faith in traditional institutions gives credit unions a rich opportunity to serve as a key source of financial guidance. Sponsored Content By Adrenaline, Inc. Credit unions can strengthen loyalty with the influential Generation Z by connecting their brand’s purpose, financial guidance, and in-branch experience. Widely described as digital natives, Gen Z meets many of their everyday banking needs with mobile apps and digital tools across multiple providers. While younger consumers certainly expect seamless digital functionality from their primary financial provider, what they value even more is meaningful advice and trusting relationships. Because beneath Gen Z’s technological savvy is a measurable confidence gap —  one that impacts every aspect of their financial lives. According to  Adrenaline’s 2026 Gen Z research  conducted with Alexander Babbage, 36% of Gen Z say they find financial matters confusing, and one in three report feeling overwhelmed by money...
Post a Comment
Read Complete Article HERE>»

Sunday Reading - What happened after the Civil War?

  Rebuilding the Union:  What happened after the Civil War? The Reconstruction era, lasting from 1865 to 1877, was the period when the US federal government sought to reunite the nation after the Civil War. Key issues included how to punish Confederates, readmit Southern states, and secure rights for newly freed Black Americans ( read Lincoln's original plan ). Following Abraham Lincoln's assassination days after the war's end, President Andrew Johnson—a pro-Union, pro-states' rights Southerner—pursued a lenient approach to reconciliation. He pardoned former Confederates , restored their property, and allowed Southern states to govern with little federal oversight. Those states quickly enacted laws restricting the freedoms of formerly enslaved pe...
Post a Comment
Read Complete Article HERE>»

GAC 2026: In Debut GAC Speech, Simpson Calls On Movement To Protect Cooperative Model

WASHINGTON—America’s Credit Unions President and CEO Scott Simpson told attendees at the 2026 Governmental Affairs Conference that what’s truly at stake in Washington isn’t just policy — it’s the “transformational experiences” credit unions create in people’s lives every day. Scott Simpson addresses the meeting. Credit unions exist—Simpson reminded the record crowd as he delivered his first GAC address as ACU’s leader—because Congress chose nearly a century ago to expand access to financial services for Americans who were being left behind. The Federal Credit Union Act wasn’t about creating another financial institution model — it was about ensuring middle America could be served. That mission remains intact, but Simpson warned it cannot be taken for granted. For years, Simpson said he has asked credit union leaders a simple question: Why do credit unions exist? The typical answer — that they are not-for-profit financial cooperatives — is true, but incomplete. Credit unions and their t...
Post a Comment
Read Complete Article HERE>»

The NCUA just published its stablecoin playbook: Here’s what credit unions need to know

The National Credit Union Administration (NCUA) has begun answering a key question for credit unions since the GENIUS Act became law last July: What is the stablecoin licensing process? On February 11, 2026, the NCUA published a  22-page proposed rule , "Investments in and Licensing of Permitted Payment Stablecoins Issuers," in the Federal Register. This document outlines the framework for credit union participation under the new Act. The NCUA has a deadline of July 18, 2026, to finalize this rule. Here’s what credit unions need to know now. Quick background: The GENIUS Act and the NCUA’s role The GENIUS Act designated the NCUA as a primary federal regulator of stablecoin, alongside the FDIC, the OCC, and the Federal Reserve. Credit unions can't issue stablecoins directly; they must operate through subsidiaries, typically CUSOs, that apply for and obtain an NCUA-issued Permitted Payment Stablecoin Issuer (PPSI) license. The newly proposed rule covers the application and l...
Post a Comment
Read Complete Article HERE>»

NCUA - Hauptman Covers Stablecoins, Solo Board And Agency Overhaul In Wide-Ranging Talk

WASHINGTON—Appearing on stage during the America’s Credit Unions Governmental Affairs Conference, NCUA Chairman Kyle Hauptman joined ACU President/CEO Scott Simpson for a wide-ranging discussion that zeroed in on what he sees as defining issues for the agency: the emergence of stablecoins, the current dynamic of serving as NCUA’s lone board member, and the accomplishments he believes will shape his legacy before   departing   for the Public Company Accounting Oversight Board. Scott Simpson (L) with Kyle Hauptman. The most forward-looking portion of Monday’s discussion centered on stablecoins, which Hauptman described as a practical, real-world application of blockchain technology rather than a speculative bet on crypto prices. He framed dollar-backed stablecoins as a payments innovation that could streamline cross-border transfers, allow recipients to hold funds in dollars, and enable more automated settlement of transactions such as loan participations. By allowing all partie...
Post a Comment
Read Complete Article HERE>»

Sunday Reading - Self-driving formula cars race in the Abu Dhabi Autonomous Racing League

The league and high-speed versions of traditional cars help to showcase the capabilities of driverless vehicles and the reliability of their AI systems. Leonardo da Vinci first imagined the idea for such machines in the 16th century. ================================================= Remember, you're not alone with  NCOFCU.org Join/Upgrade Check out some of NCOFCU's additional features: First Responder Credit Union Academy Financial Literacy Podcasts YouTube Mini's Blog Job Board
Post a Comment
Read Complete Article HERE>»

Stablecoins Moving from Crypto Curiosity to Payments Infrastructure

At the 2026 Governmental Affairs Conference (GAC), credit union leaders heard a clear message: stablecoins are rapidly evolving from a niche crypto tool into a core component of modern payments infrastructure. Stablecoins are digital tokens typically pegged to a fiat currency like the U.S. dollar and backed by reserves such as cash or short-term Treasury securities. Initially used mostly inside cryptocurrency markets, they are now increasingly being viewed as a faster and more efficient way to move money globally . Why Stablecoins Matter The technology offers several potential advantages over traditional payment systems: 24/7 settlement instead of banking-hour restrictions Faster cross-border payments with fewer intermediaries Lower transaction costs compared with legacy payment rails Greater transparency and programmability in how funds move These capabilities are why banks, fintechs, and large financial institutions are beginning to explore stablecoins as part o...
Post a Comment
Read Complete Article HERE>»

TruStage To Launch TSDA, Bringing Stablecoin Infrastructure To Community FIs

MADISON, Wis.— TruStage Tuesday today announced the planned launch of TruStage Stablecoin (TSDA), a fully reserved U.S. dollar stablecoin. At its core, TSDA is designed to broaden access to digital payment infrastructure for community-based financial institutions, TruStage explained. “A trusted partner of credit unions for more than 90 years, TruStage currently works with more than 93% of 4,300+ credit unions nationwide, which collectively hold more than $2 trillion in assets. TruStage Stablecoin will be among the very first stablecoins specific to community based financial institutions and is supported by decades of industry relationships, financial strength, and operational excellence,” TruStage said. “In my career working with credit unions, I’ve never witnessed the level of engagement surrounding any technology advancement similar to what I’m seeing with stablecoin solutions right now,” said Brian Kaas, president and managing director of TruStage Ventures, the venture capital arm o...
Post a Comment
Read Complete Article HERE>»