Manta’s Kenny Li says the banks we know won’t survive the next cycle

Manta’s Kenny Li says the banks we know won’t survive the next cycle originally appeared on TheStreet.

Kenny Li, co-founder of Manta Network, has been in the crypto space long before it was cool. “Back then, Bitcoin meetups were full of the weirdest people I’ve ever seen in my life,” he told TheStreet Roundtable’s Alp Gasimov. Now, with BlackRock, Fidelity, and Congress all openly engaging with digital assets, Li believes we’ve hit a turning point.

Speaking during the U.S. House’s first-ever “Crypto Week,” which spotlighted bipartisan legislation like the GENIUS and CLARITY Acts, Li said what many in traditional finance aren’t ready to hear: the banking model as we know it is on its way out.

“I think banks as we know them today will not exist,” Li said. “Banks will transform more into the infrastructure level rather than the pure consumer-facing level. And so the day-to-day interactions we’ll have are going to be peer-to-peer.”

From ignored to legislated

Li pointed to a striking shift in institutional behavior. “Ten years ago, no one would have believed Fidelity or BlackRock would be in this space,” he said. “Now they are launching stablecoins and exploring central bank digital currencies.”

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That trajectory — from being ignored to feared to now being regulated — is something Li sees as undeniable progress. In his view, we’re entering an era where users will manage their finances on-chain and in real time, without the need for third-party approval or gatekeeping.

Why would anyone still use a bank?

At the heart of Li’s argument are yield and control. In decentralized finance (DeFi), users can earn interest on their assets with full liquidity, unlike in the traditional banking system.

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“In the crypto space, you can earn the yield of T-bills while still being fully liquid,” he explained. “Anyone who has both options with no brain would choose the option where I still control my money, I can pull out at any time. And in the meantime, I can get the benefits of that yield.”

A call to U.S. regulators

As crypto-native networks offer yield, access, and user control at scale, Li warns the U.S. risks missing out.

“If the U.S. does not embrace crypto as a strategic financial tool, someone else will,” Li said. “And by the time the next market cycle arrives, the most influential financial institutions may not be banks at all.”

Manta’s Kenny Li says the banks we know won’t survive the next cycle first appeared on TheStreet on Aug 5, 2025

This story was originally reported by TheStreet on Aug 5, 2025, where it first appeared.

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