Bybit plans to launch MyBank, a neobank-style retail banking product in February 2025, showcasing the exchange’s expansion into traditional finance. However, industry experts warn of regulatory challenges as Bybit enters unfamiliar territory for a crypto-native company seeking banking services.

To offer banking services, Bybit is partnering with Pave Bank, a licensed lender in Georgia, indicating a strategic move to support its retail banking offering. Pave Bank raised $39 million in a Series A funding round in 2025, with backing from Tether Investments, a major player in the industry.

Industry observers caution that Bybit’s ambition to operate as a full-service bank could present significant challenges, especially in terms of obtaining a banking license and complying with regulatory requirements. While many exchanges offer bank-like features, operating as a bank entails a different level of complexity and responsibility.

Bybit’s move into retail banking symbolizes the increasing convergence between crypto and traditional finance, reflecting a broader trend in the industry. Platforms in crypto are venturing into traditional finance, while traditional financial services are exploring opportunities in the crypto space.

Retail users may experience increased KYC procedures if Bybit transitions into a bank, potentially complicating the user experience for those accustomed to simpler onboarding processes on crypto exchanges. The move could introduce trade-offs for retail users, emphasizing the importance of understanding the implications of Bybit’s neobank push.

Read more at Cointelegraph: Bybit Faces Compliance Hurdles With Neobank Push