AI-native neobanks deploy hedge fund algorithms to combat global currency volatility
- AI-native neobanks are deploying hedge fund–style algorithms to actively manage user funds rather than just store them.
- Traditional neobanks still struggle with profitability and offer limited protection against inflation and currency volatility.
- Stablecoins are widely used as a hedge in volatile economies, but alone, they do not fully protect purchasing power.
AI-native neobanks have started to position themselves as the answers to static savings accounts by implementing algorithms to meet the demands of users looking for more than the currently available options.
In 2025, the global neobanking market size was valued at $210.16 billion, and projected to grow to $310.15 billion in 2026 and over $7.6 billion by 2034. However, after a decade and more than $32 billion in venture funding, neobanks have delivered instant transfers and digital interfaces, but 80% of players still can’t turn a profit.
They have not evolved with user demands either.
AI-native neobanks, a new class of banking options, offer income stabilization through automatic hedging when local currency volatility spikes, capital preservation through yield strategies that outpace inflation, and the ability to hold, convert, and deploy capital across stablecoins, fiat, and trading positions.
Neobanks move from passive storage to active management
Banks have traditionally been passive, holding deposits and executing user commands.
Traditional neobanks have gotten quite good at moving money around, but they are not the best when it comes to protecting that money from inflation, currency swings, and economic turbulence.
AI-native neobanks operate differently, watching markets, managing risk, and taking action autonomously.
“I expect AI infrastructure to become something users just expect, the same way they expect instant transfers now,” says Bryan Benson, CEO of Aurum and former Managing Director at Binance. “Neobanks that don’t offer it will feel broken by comparison.”
Aurum’s approach combines three elements: the neobank interface, the EX-AI bot engine, and a Visa card for daily spending. Users see a standard banking app while algorithmic systems manage the underlying complexity.
Stablecoins don’t solve all the currency inflation problems
Economic instability is no longer confined to emerging markets. Currency swings now affect importers in Germany as hard as farmers in Colombia; however, traditional neobanks are not offering defense mechanisms.
Users in volatile economies have begun seeking alternatives. Data from TRM Labs showed stablecoin transaction volume reached $4 trillion in the first eight months of 2025, an 83% increase from the same period in 2024.
Turkey saw 3.7% of its entire GDP flow into USD-backed stablecoin purchases in 2024, while nearly 12% of Nigeria’s population now holds stablecoins as a hedge against the naira.
“At Binance, I watched users in Latin America figure out the first part on their own,” Benson said. “They moved into USD-pegged stablecoins as a safe haven from local currency volatility. That solved the immediate problem of watching their savings collapse against the dollar.”
However, stablecoins alone don’t fully address the problem. “USD still inflates at 3–4% a year, which means your purchasing power is still bleeding, just slower,” Benson said. “That’s where the real benefit of yield products comes to light. AI-backed features like staking, liquidity providing, and lending. These let users put their stablecoin holdings to work and actually outpace inflation.”
AI-native neobanks expand Wall Street’s algorithmic infrastructure to retail
Institutional players use systems that analyze price and volume across exchanges simultaneously, track order book depth, monitor liquidity shifts, and catch arbitrage windows lasting seconds. AI-native neobanks are attempting to compress this infrastructure into consumer products.
Over 60% of US equity trades now flow through algorithmic systems. JPMorgan has over 200,000 employees using AI tools daily, while Goldman, Citadel, Two Sigma, and major trading desks have rebuilt their infrastructure around algorithms.
Until recently, retail investors had no access to this technology. The infrastructure remained behind institutional walls, reserved for clients meeting seven-figure minimums.
The new generation of AI-native neobanks expands these AI trading tools that operate around the clock, monitor markets in real time, and execute spot trades without human input to users, managing positions independently, applying risk protocols and adapting to market changes.
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