On-chain bank OpenReserve raises $25M seed led by a16z crypto

The funding signals growing institutional appetite for regulated on-chain banking infrastructure, bridging traditional bank rails with programmable settlement. The backing from major crypto and fintech investors suggests this model is gaining credibility beyond niche experimentation. The core tension to watch is how a regulated bank balance sheet reconciles with the promise of a 'never-closed' system, especially around compliance, liquidity, and auditability. Whether other banks adopt similar hybrid architectures, or whether regulators push back on the scope of tokenized deposits, will define if this is a scalable trend or a bespoke pilot.