Ethereum reached a turning point in 2025 — institutional funds began to enter the market on a large scale through tools like digital asset vaults. This has prompted the market to start thinking: what will happen next?

The answer might be the rise of crypto-native banks. The CEO of ether.fi recently stated that Ethereum's next phase of expansion will be driven by financial products, not just technological upgrades. This sounds very professional, but the core is actually simple — enabling ordinary users to enjoy the benefits of crypto finance.

The problem is, DeFi is still too complex for most people. Private key management, Gas fees, cross-chain operations… these things are enough to deter many potential users. The new generation of crypto banks aims to solve this. They hide the complexity in the background, offering self-custody accounts, high-yield stablecoins, and experiences similar to traditional mobile banking. Users just need to deposit money, and the rest is handled by the protocol.

Supporting all this are two key mechanisms. One is institutional staking, and the other is liquidity staking. Especially in 2025, the rise of digital asset vaults allows enterprises to directly hold Ethereum and earn staking rewards, offering far greater flexibility than spot ETFs.

Looking ahead to 2026: by the first quarter, institutional vaults and new banks will form a synergy, and users might achieve 4%-5% on-chain annualized returns. Sounds modest? Considering that stablecoins are inherently low-risk, this is already very attractive to many people. This marks the beginning of Ethereum truly becoming a daily financial infrastructure — no longer just an investor’s paradise, but a tool for ordinary people to manage their finances.