Ether.fi Unleashes Neobank Upgrade with Tokenized Stocks and Low-Interest Loans

Ether.fi has launched its 'Summer' upgrade, transforming its self-custody app into a full-fledged neobank. The update adds features such as tokenized stock trading through xStocks, Aave-powered portfolio loans at approximately 4%, and fiat accounts across more than 30 currencies.

The release also enables users to borrow against their holdings without selling, mirroring traditional brokerage margin accounts but without a centralized intermediary. Assets available for borrowing include ETH, BTC, HYPE, and Ether.fi's native governance token, ETHFI.

The neobank now supports over 500,000 members and around 150,000 active payment cards, with a $2 billion annual transaction run rate. CEO Mike Silagadze stated that the platform aims to replace traditional banks for most users by bringing institutional-grade financial tools into a self-custodial environment.

The team plans to quickly expand the collateral asset list after launch, and tokenized equities and commodities trade through xStocks within self-custodial vaults with social recovery enabled. The update also includes a programmatic buyback program for ETHFI, funded directly by platform revenue.