Summary: Enterprise fintechs can move users from Web2 to Web3 with near-zero UX friction by combining account abstraction, passkeys, stablecoin rails, and verifiable-credential KYC—while staying within SOC 2 and MiCA guardrails. This playbook maps the technical stack (Solidity, ZK, OIDC) to measurable ROI and procurement outcomes.

Title: How to Migrate Web2 Fintech Users to Web3 Without Friction

Target audience: Enterprise Fintech (banks, neobanks, payments, brokerages). Required enterprise keywords: SOC 2, ISO 27001, PCI DSS, GLBA, vendor due diligence, SSO/SAML, RFP/SOW.

PAIN — Your specific technical headache right now

• You need crypto utility (faster settlements, programmable accounts) without wrecking your existing sign-in, KYC, and risk controls.
• Your Web2 auth and compliance stack (OIDC/SAML, device trust, SIEM) isn’t designed for seed phrases, gas fees, or chain-specific UX.
• Your procurement team demands SOC 2 Type II, audit trails, access controls, disaster recovery, and clear ROI within a 1–2 quarter pilot.

What changed in 2024–2026 that makes this solvable?

• Ethereum shipped Dencun/EIP-4844 (proto-danksharding), cutting L2 data costs via blob transactions; rollups now publish cheap, short-lived data in the beacon node, with a separate fee market. Net effect: materially lower L2 fees and stable user costs. (eip4844.com)
• Pectra (May 7, 2025) activated EIP-7702, letting EOAs behave like smart accounts for a transaction—enabling batching, gas sponsorship, and alternative authentication (e.g., passkeys) at the protocol layer. (blog.ethereum.org)
• Passkeys are now mainstream: FIDO’s 2025 Passkey Index shows 93% sign-in success (vs. 63% for legacy flows) and 73% faster logins; Microsoft reports passkeys are 3× more successful than passwords (≈98% vs. 32%). This is conversion lift you can model. (fidoalliance.org)
• Settlement rails matured: Visa launched USDC settlement for U.S. issuers/acquirers, with weekend/holiday availability and initial banks settling over Solana. This lets you move funds 24/7 while keeping card UX unchanged. (usa.visa.com)
• EU MiCA timelines and EBA guidance are clearer: stablecoins (e-money tokens) require additional payment/e-money licensing by March 2, 2026; many Member States run a “grandfathering” window until July 1, 2026. You can plan a sequenced EU rollout without regulatory surprises. (eba.europa.eu)

AGITATION — The risk of staying with Web2-only rails

• Missed GTM windows: Without seedless onboarding and gas abstraction, you’ll see authentication drop-offs and “stuck” first transactions. Every 1% sign-in lift compounds through KYC, funding, and first action.
• Compliance exposure: OFAC expects the same controls regardless of fiat or crypto; failing to block or report digital-asset activity correctly is a civil/criminal risk. FinCEN still treats many crypto flows under MSB rules. (ofac.treasury.gov)
• Security headlines: 2025 saw record state-actor crypto thefts and a surge in personal wallet compromises; cross-chain bridges remain both targets and laundering conduits. Board-level risk appetite shrinks when you don’t architect for these realities. (chainalysis.com)
• EU market access: If you offer stablecoin payments in the EU without planning for MiCA + payment/e-money authorization paths, you risk deadlines slipping past your FY roadmap. (eba.europa.eu)

SOLUTION — 7Block Labs’ “Frictionless Migration” blueprint We bridge complex implementation (Solidity, ZK, AA) with enterprise outcomes (conversion, cost-to-serve, compliance). The core idea: act like a modern fintech on the surface (passkeys, SSO, OIDC) while your Web3 stack handles the heavy lifting invisibly.

Step 1 — Keep the login exactly where your users expect it

• Passkeys + OIDC: Use your existing IdP (Okta, Azure AD, Auth0, Keycloak 26.4+) to enroll passkeys and assert a JWT to your app. Map the authenticated user to a smart account automatically. Expect faster sign-ins and fewer help-desk tickets. (keycloak.org)
• SIWE only where needed: If you use Sign-In with Ethereum, bind messages to the true origin per EIP‑4361 to avoid phishing and keep sessions tied to the wallet address. (eips.ethereum.org)
• Embedded wallets with WebAuthn: For mobile-first flows, passkeys can authorize wallet actions server- or client-side with standard P‑256, while your IdP continues owning the session and audit trail. (docs.privy.io)

Where we help: SSO integration and wallet orchestration under one consistent UX via our web3 development services and blockchain integration.

Step 2 — Make wallets “invisible” with Account Abstraction

• Protocol-native AA with EIP‑7702 for instant win: Batch approve+swap in one atomic tx, support gas sponsorship, and plug in passkey-based auth. This removes the “Why do I need ETH to move USDC?” failure point. (blog.ethereum.org)
• ERC‑4337 smart accounts for advanced policy: Use UserOperations, Paymasters, and initCode to deploy accounts on first use, sponsor gas in USDC, and enforce spending limits/session keys. Production-grade docs and tooling now exist. (docs.erc4337.io)
• Modular accounts to avoid vendor lock-in: Adopt ERC‑7579 minimal interfaces and gate third‑party modules via ERC‑7484 attestations. This lets you add MFA validators, recovery, or policy hooks without migrating accounts later. OpenZeppelin 5.2 includes AA utilities. (eips.ethereum.org)

Where we help: Reference implementations, paymaster strategy, and policy modules via our smart contract development and custom blockchain development services.

Step 3 — Turn KYC from a hard gate into a reusable, privacy‑preserving credential

• Verifiable Credentials with OpenID4VCI: Issue “KYC-passed” or “age-over-18” credentials from your existing OIDC flows; verify them across apps without re-collecting PII. OpenID Foundation’s 2026 self-cert program and 2025 implementers’ draft unblock procurement. (openid.net)
• ZK proofs where you must not leak details: Use zkEmail (DKIM-backed proofs) or Polygon ID–style proofs to assert facts (domain ownership, age, residency) without revealing raw data. This is practical today, with audited SDKs and on-chain verifiers. (docs.zk.email)

Where we help: VC issuance/verification pipelines and selective-disclosure designs through our security audit services and dApp development solutions.

Step 4 — Move money with stablecoin rails while preserving compliance posture

• 24/7 USDC settlement via card programs: Visa’s U.S. rollout enables issuers/acquirers to settle in USDC with no change to card UX—improving weekend liquidity and reconciliation windows. (usa.visa.com)
• On/Off-ramp options that don’t derail procurement: Stripe’s hosted/embedded onramp handles KYC, fraud, and disputes as merchant of record; plug it into funding or withdrawal flows without building a compliance team from scratch. (docs.stripe.com)
• Cost baselines you can defend: Same‑day ACH fees and limits reduce some friction but remain batchy; wires are still $27 domestic avg and far higher cross‑border. Stablecoin rails give you deterministic finality windows and programmable settlement. (frbservices.org)

Where we help: USDC program architecture, ledger mapping, and reconciliation via our cross-chain solutions and asset tokenization.

Step 5 — Guardrails: sanctions, AML, and regional rollouts

• U.S.: OFAC’s virtual currency guidance says your obligations are the same as fiat—block, report, retain. Build screening at address, name, and behavioral levels; keep 31 CFR 501.603 reporting in mind for blocked property. (ofac.treasury.gov)
• EU: MiCA’s staggered implementation + EBA “No Action” letter flags dual authorization for EMTs (stablecoins) until March 2, 2026, and Member State grandfathering up to July 1, 2026. Plan your licensing and vendor map accordingly. (eba.europa.eu)
• Cross-chain risk: Bridges remain high-risk targets and laundering routes; prefer canonical bridges or minimize bridging surface area altogether. If you must bridge, design policy modules that cap exposures and integrate anomaly detection. (arxiv.org)

Where we help: Control frameworks, sanctions/KYT controls, audit-ready documentation via our security audit services.

Technical blueprint (what we actually ship in 90 days)

• Authentication and custody
  • Passkey enrollment via your IdP; OIDC JWT becomes the “who” for policy decisions. (fidoalliance.org)
  • Smart account factory (ERC‑4337/‑7579) wired to your user directory; deploy on first onchain action with initCode. (docs.erc4337.io)
  • Policy modules: daily outflow caps, allowlists, session keys, time locks, and guardian recovery; all attestable via ERC‑7484. (eips.ethereum.org)
• Transactions and fees
  • EIP‑7702 path for batching and token-based gas on mainnet; EIP‑4844 L2s to keep fees sub‑cent most days. (blog.ethereum.org)
  • Paymasters to sponsor first actions; rate-limit sponsorship via hooks. (docs.erc4337.io)
• KYC and credentials
  • OIDC → OpenID4VCI issuance of “KYC verified” credentials; verifier SDK gated by risk policy. (openid.net)
  • ZK attestations for selective disclosure (e.g., age/risk-tier) or recovery (zkEmail-based recovery flows). (github.com)
• Money movement
  • USDC settlement integration for card programs; embedded onramp for fiat↔crypto with retained dispute/KYC burden by the provider. (usa.visa.com)
  • Automated reconciliation: map on-chain events to your GL and downstream BI.

Practical example #1 — U.S. broker-dealer adding 24/7 withdrawals

• Problem: ACH cutoffs and weekend delays triggered support tickets and churn.
• Implementation:
  • Passkeys + OIDC keep sign-in unchanged; users never see a seed.
  • ERC‑4337 account with Paymaster sponsoring first withdrawal in USDC; batch approve+transfer using EIP‑7702 when on mainnet. (docs.erc4337.io)
  • Visa USDC settlement for card-connected flows to issuers/acquirers; weekend funding works, no consumer-change management required. (usa.visa.com)
  • OFAC screening at address/name level; event logs pushed to SIEM for SOC 2 evidence.
• Business result to model: 20–30% reduction in “where is my money?” tickets; 8–12% lift in weekend NPS; reduced treasury idle balances due to 24/7 settlement.

Practical example #2 — EU fintech preparing for MiCA + stablecoin payments

• Problem: Want stablecoin checkout but unclear licensing path and data minimization for GDPR.
• Implementation:
  • Use OpenID4VCI to issue “KYC-passed” verifiable credentials; accept selective‑disclosure proofs at checkout so PII stays off third‑party rails. (openid.net)
  • Stage rollout by country, aligning with MiCA grandfathering periods and dual-license needs for EMTs before March 2, 2026. (eba.europa.eu)
  • Choose an L2 with stable fees post‑EIP‑4844; add paymaster sponsorship for first-time payers. (eip4844.com)
• Business result to model: faster pan‑EU expansion with fewer repeated KYCs, lower data-handling burden, and predictable compliance timeline.

Emerging best practices we recommend adopting now

• “Money phrases” to prioritize:
  • “Seedless onboarding” with passkeys and AA is a conversion feature, not a crypto feature. Expect materially higher success rates vs. passwords/MFA. (fidoalliance.org)
  • “Sponsor the first transaction” to remove the ETH-for-gas dead-end and maximize first-action completion. (docs.erc4337.io)
  • “Protocol-native batching” (EIP‑7702) reduces steps and support tickets around approvals and swaps. (blog.ethereum.org)
  • “Blob-backed L2 fees” (EIP‑4844) are how you lock in predictable unit economics. (eip4844.com)
• Module governance
  • Standardize on ERC‑7579/‑7484; store audit attestations onchain; block un-attested modules in production. OpenZeppelin 5.2 can accelerate reviews. (eips.ethereum.org)
• Compliance as code
  • Sanctions checks at the wallet and transaction policy layer; emit audit logs for SOC 2 evidence. OFAC treats digital assets and fiat equivalently for prohibitions and blocking. (ofac.treasury.gov)
  • For EU stablecoins, lock your licensing plan to MiCA + payment/e-money timelines; avoid cliff-edge risk post‑grandfathering. (esma.europa.eu)

GTM proof — Metrics you can take to the CFO and Procurement

• Conversion and support
  • Passkeys deliver ~93% sign-in success and ~73% faster logins; Microsoft reports ≈98% success in consumer flows. Expect fewer login-related tickets and higher funnel throughput. (fidoalliance.org)
• Cost-to-serve
  • Same-day ACH fees (network fee ≈$0.052 + processor margin) and limits contrast with deterministic stablecoin settlement windows; wires average $27 domestic and far higher cross‑border—use this delta in your business case. (frbservices.org)
• Adoption signals
  • Safe-style smart accounts have crossed tens of millions of deployments, indicating production viability for AA wallets at scale. (messari.io)
• Risk posture
  • 2025 Chainalysis data shows concentration of losses in a few large incidents and growth in personal wallet compromises—reinforcing the decision to keep users away from raw keys and enforce policy at the account layer. (chainalysis.com)

What 7Block delivers (and how we contract)

• Discovery and Architecture (2–3 weeks): Current-state audit (SSO, KYC, AML, ledger), risk workshop, and a signed architecture doc that Procurement can review against SOC 2/ISO 27001 controls. We outline measurable KPIs (sign-in success, first-action conversion, weekend settlement time).
• Pilot Build (6–8 weeks):
  • Smart account factory (ERC‑4337/‑7579) with EIP‑7702 path for mainnet batching.
  • Paymaster and session-key policies, ZK credential issuance/verification POC.
  • On/Off-ramp integration (e.g., embedded, hosted) and USDC settlement path.
  • Sanctions screening hooks and SIEM logging; SSO/SAML, SCIM provisioning as needed. (docs.stripe.com)
• Security and Audit Readiness (parallel): Threat modeling, unit/integration tests, formal checks for critical modules, and audit coordination. Evidence pack aligned to SOC 2 Type II and ISO 27001 for your auditors.
• Handover and ROI Report (week 10–12): Live metrics vs. baseline, backlog for Phase 2 (e.g., cross-chain expansion), and board-facing ROI narrative.

Relevant 7Block capabilities

• Product and delivery: web3 development services, custom blockchain development services, dApp development
• Protocol and security: smart contract development, security audit services
• Integration and scale: blockchain integration, cross-chain solutions development, asset tokenization, blockchain bridge development

In-depth technical notes (for your engineering leads)

• ERC‑4337 stack
  • UserOperation lifecycle, EntryPoint, and Paymasters allow gasless sponsorship and token-based fees; initCode enables “deploy on first use.” We ship templated factories with defense‑in‑depth validation. (docs.erc4337.io)
• EIP‑7702 vs classic AA
  • EIP‑7702 lets existing EOAs temporarily act like smart accounts, so users can keep familiar addresses while getting batching, alternative auth, and spending controls. We typically combine 7702 for mainnet convenience with 4337 on L2s for richer policy and tooling. (blog.ethereum.org)
• ZK credentialing
  • OpenID4VCI is now a stable implementers’ draft and heads to self‑cert in Feb 2026; pair this with zkEmail for selective disclosure or account recovery without storing sensitive inbox content on servers. (openid.net)
• Fee dynamics post‑EIP‑4844
  • Blobs sit in the beacon node with their own fee market and ~2‑week retention, making rollup data cheap and predictable vs calldata. We model blob fee volatility in your unit economics to derisk pricing. (eip4844.com)

Bottom line

• Users shouldn’t learn “crypto” to get the benefits of Web3. With the right architecture, their login, compliance, and funding experience feels like your current app—only faster, cheaper, and programmable.
• Your procurement and risk teams get SOC 2–ready evidence, sanctions controls, and a licensing roadmap for MiCA/EMT.

CTA for Enterprise Book a 90-Day Pilot Strategy Call.