How Does a Wallet Fit Into a Neobank’s Tech Stack

Neobanks are rewriting the rules of financial infrastructure. From customer onboarding to KYC, and transaction routing, each layer is now programmable and powered by specialized APIs. But beneath the smooth experience and intelligent logic, there’s one essential component that actually executes every financial action: the wallet.

The Role of Wallets in a Neobank’s Orchestration Stack

Neobank infrastructure is built in layers, each handling a different piece of the puzzle:

• Frontend interface: This is where users engage with the neobank, using dashboards, mobile apps, and web portals. It’s the presentation layer that handles navigation, inputs, and status updates.
• Business logic: This layer defines how the system behaves behind the scenes. It manages payment rules, account types, transaction limits, approval conditions, and product settings.
• Compliance and risk: All user actions and data pass through this filter. It performs identity verification (KYC), monitors for fraud, screens transactions against sanctions lists, and enforces regulatory requirements.
• Routing engine: This component determines how funds move under the hood. It selects bridges, optimizes for gas fees, converts between currencies, and chooses the best available network path.
• Wallet layer: This is the execution engine of the stack. It signs transactions, transfers assets, enforces programmable rules, and logs every action for traceability and auditability.

The wallet layer is where abstraction ends and execution begins. It’s the only part of the stack that directly touches money.

From Onboarding to On-Ramps and Beyond

To visualize how wallets underpin every part the neobank user flow, here’s a simplified journey:

1. User onboarding: Where a customer completes identity verification and onboards to the platform.
2. Wallet setup: A wallet is issued using an API like Dynamic. This wallet becomes the foundation for the user’s account and digital identity.
3. On-ramp: Fiat is converted into stablecoins (such as USDC) via providers like Stripe or MoonPay. The wallet receives and stores those funds.
4. Execution layer: Once funded, the wallet enables a variety of programmable actions:
   
   • Spending via debit cards
   • Earning yield on stablecoins
   • Swapping or sending assets to others
   • Off-ramping funds back to bank accounts when needed

Each of these actions is only possible because the wallet can approve, sign, and record them onchain or within your neobank’s internal systems.