My kids play video games. Sometimes too much. It used to be Roblox and Minecraft and then Fortnite and who knows what else as they gravitated from PlayStation and Xbox to basic mobile games and then eventually PC games. The console vs PC philosophy I guess.
What I noticed over the years is how much has changed since I was younger and had my Ultima and Star Control and Diablo 2 and Fable and then Elder Scrolls and NHL and Madden experiences is that everything is in app purchases and subscriptions now. Buy an Xbox game and have to update and subscribe and take an hour to set it up. No more throw in the dvd or cartridge and start playing. Different times.
Thinking on all these payment layers and back to some Pagarba VR and AR and decentraland and blockchain crypto tokenization and gamification angles and projects we did , it's fascinating how far the spaces have come, but how far they still need to go for a broader audience reach.
The web3 gaming, prediction markets and digital wallets have adapted and are now converging on the same problem; who owns the customer relationship when payments, digital assets and commerce become part of the product.
The answer is becoming less about blockchain and crypto tokens itself and more about who controls the layer between the customer and the transaction.
Web3 gaming did not struggle because blockchain stopped working. It struggled because blockchain became the user's burden. And a lot of web3 games were awful. And the virtual land and decentraland variations were just worse versions of second life honestly.
And blockchain and crypto have had that UX and UI challenges for a decade now. Users or players are expected to create wallets, protect seed phrases, understand gas fees, approve transactions and think about tokens before they could simply play a game or use the application.
That is a product problem, it's a user experience problem and not a cryptography problem. The technology became visible at exactly the point where it needed to disappear. And then you has the typical tech bro response of calling users too dumb to use it. That never goes well and never works.
The numbers reflect the problem. Web3 gaming funding fell sharply in 2025, while daily active wallets declined to roughly 4.8 million in the second quarter, the lowest level since early 2023.
The underlying technology continued to operate. The user experience did not create enough value to justify the additional complexity.
The Ronin bridge exploit showed what happens when infrastructure becomes part of the trust relationship.
In March 2022, attackers compromised validator keys associated with the Ronin Network and used them to authorize fraudulent withdrawals totaling roughly $625 million. Think about that. $625 million.
The technical details were sophisticated, but the customer experience was simple as the assets were no longer safe. Reputation for financial and gaming are huge. Don't trust any of it and nobody wants to use it. And it's not as simple as a master card fraud charges where there are processes in place to cancel those transactions and get your money back. Cancel the card and so on. Blockchain and crypto seemed to forget hackers exist, people forget passwords all the time and bad things can happen. Nobody wants to think they're just screwed.
Users do not care whether the failure happened in a validator set, bridge contract, custody system or payment processor.
They care whether their money, assets and account are still there.
The next generation of Web3 products is therefore taking the opposite approach. So there is progress and hope.
Make the infrastructure disappear.
If you're familiar with gaming and payments, Xsolla is one of the bigger players. There are many companies like them who do well , have many paying customers, many employees globally yet if you know you know and if you don't, you never heard of them but maybe saw them somewhere.
I used to work at a company called ESET. Great efficient and cost effective anti virus software company. Nobody heard of them but a few people. Yet I worked for them like 16 years ago and they still are around and have their products on display at Microcenter now.
Which brings me back to Xsolla and their plans for blockchain and backpacks and wallets and payments and zero knowledge proof. Xsolla has started implementing their Xsolla ZK and maybe it's part of the wave of the future for web3 products and features. It's not tech trying to find a problem. It's a problem being solved by technology.
Xsolla originally positioned ZK as ZKsync-based infrastructure for managing digital assets and verifiable ownership. Its broader Web3 strategy has increasingly focused on ownership, programmable value exchange, interoperability and player participation without requiring the player to understand the underlying blockchain infrastructure. Nobody cares about a wallet or token. They just want things to work and work fast and be tustworthy.
That direction makes considerably more sense than asking every gamer to become a crypto user.
The best blockchain product may eventually be the one where the customer never knows blockchain was involved.
But that creates a much bigger competitive problem for Xsolla.
Because the financial industry is moving in the same direction.
Coinbase is moving deeper into regulated financial infrastructure. The OCC conditionally approved Coinbase's national trust bank charter application in 2026.
The OCC also conditionally approved five national trust bank applications in December 2025. First National Digital Currency Bank and Ripple National Trust Bank received conditional approvals for new national trust bank charters, while BitGo, Fidelity Digital Assets and Paxos received conditional approvals to convert existing trust companies into national trust banks.
The distinction matters.
These companies are not simply trying to become traditional retail banks. They are moving pieces of custody, settlement, fiduciary services and digital asset infrastructure closer to the regulated financial system.
PayPal is pursuing a different version of the same strategic direction. It has applied to establish an industrial bank in Utah, seeking greater control over parts of its financial infrastructure and the services it provides to businesses. That is another example of a platform trying to bring more of the financial relationship under its own control rather than depending entirely on external institutions.
Robinhood is doing something similar from the consumer finance side. It has expanded from brokerage into crypto, prediction markets, futures and derivatives. In late 2025, Robinhood announced a joint venture with Susquehanna International Group, with Robinhood as the controlling partner, to acquire MIAXdx and build an independent CFTC-licensed exchange and clearinghouse. The acquisition closed in January 2026. Robinhood reported more than 12 billion event contracts traded in 2025.
That is important because Robinhood is not simply adding another feature to its app. It is investing in the infrastructure underneath the feature.
MetaMask is moving in the opposite direction from a traditional financial institution.
It starts with the wallet.
Then it adds the payment layer.
MetaMask has launched its own stablecoin and connected its wallet to a Mastercard payment product, allowing users to spend assets held through the wallet.
Kraken has similarly moved from exchange infrastructure into consumer payments with its Kraken Card, bringing crypto balances into a conventional card experience.
The strategic pattern is difficult to miss.
Financial companies are moving toward wallets.
Wallet companies are moving toward payments.
Payment companies are moving toward stablecoins.
Stablecoin companies are moving toward regulated financial infrastructure.
And gaming companies are trying to make digital ownership and value exchange part of the commerce experience.
The boundaries are collapsing.
Traditional payment networks are not standing still either.
Mastercard has been building stablecoin and wallet capabilities with companies including MetaMask and Kraken.
The important point is that Web3 payment products are not necessarily replacing traditional payment networks.
In many cases, they are using them.
The blockchain may provide the asset layer.
The wallet may provide the customer relationship.
The stablecoin may provide the settlement asset.
The card network may provide the merchant acceptance layer.
The customer simply taps a card.
That is the real convergence. It's not what the original Bitcoin and cryptocurrency and blockchain world dreamed of and it's certainly far from Decentralization, but maybe that's just how it stays relavent and changes things in its own way.
Visa's own analysis estimated that adjusted stablecoin transaction volume was on track to exceed $10 trillion in 2025 after removing high frequency trading wallets, smart contract addresses and bot activity.
The precise number depends on methodology, but the strategic signal is difficult to ignore.
Stablecoins are no longer simply a crypto trading instrument.
They are becoming financial infrastructure.
And that changes the competitive landscape.
The real competition is not blockchain versus Visa.
It is control of the customer relationship.
Who owns the wallet?
Who controls the payment experience?
Who owns the rewards layer?
Who controls identity and attribution?
Who gets the next transaction?
The company controlling those relationships can increasingly capture value across multiple layers of the transaction.
That is why Xsolla's position is interesting.
Xsolla already sits inside the commerce relationship between game developers, publishers and players.
It does not need to convince a player to download a cryptocurrency application simply to establish a financial relationship.
The commerce relationship already exists.
That gives Xsolla a potential advantage.
But it also creates a much larger competitive field.
Xsolla is not simply competing with other merchant of record providers. It is competing with platforms that already control enormous customer relationships.
Coinbase has the financial account.
MetaMask has the wallet.
PayPal has merchant relationships and consumer payments.
Robinhood has the retail financial customer and the exchange infrastructure underneath it.
Visa and Mastercard control enormous payment acceptance networks.
The strategic question is therefore not whether Xsolla can build blockchain infrastructure.
It can.
The question is whether it can use that infrastructure to strengthen the relationship it already has with the gaming ecosystem.
That is a much more interesting product question.
Prediction markets provide another example of financial infrastructure becoming embedded in consumer platforms.
Robinhood's prediction market strategy is not simply about putting event contracts in an app. It is increasingly about the infrastructure underneath them: exchange access, clearing, liquidity, distribution and the customer relationship.
That distinction matters.
The market is moving away from standalone products toward integrated financial ecosystems.
A user does not necessarily care whether the company behind the experience is technically an exchange, wallet provider, payment company, bank or gaming commerce platform.
They care that the account works.
They care that the money moves.
They care that their assets are available.
They care that rewards arrive.
They care that checkout is fast.
They care that someone is accountable when something goes wrong.
The distinction between a wallet and a bank may become increasingly irrelevant from the customer's perspective.
What matters is who owns the relationship.
That is also why the competitive advantage will increasingly migrate away from blockchain mechanics.
The first generation of Web3 asked users to enter the blockchain.
The next generation is trying to put blockchain behind the experience.
That is a much better product strategy.
But it also changes what companies are actually competing for.
Wallets, payments, rewards, identity, commerce and settlement are converging into a single customer relationship.
The companies that control that relationship will have the strongest position.
Xsolla has a legitimate opportunity because it already controls an important piece of the gaming commerce relationship.
But Coinbase, MetaMask, Kraken, PayPal, Robinhood, Visa and Mastercard are all moving toward adjacent pieces of the same territory.
The question was never who has the best blockchain.
The question is who can make the entire financial and commerce experience feel invisible.
The infrastructure disappears.
The relationship remains.
And eventually, when the infrastructure is badly designed, the customer finds it anyway.
