“Can a YC-backed neobank for gig-economy workers and SMBs relaunch its embedded finance platform after pausing its sponsor-bank-dependent deposit program?”
Oxygen launched in 2018 as a YC-backed neobank targeting gig-economy workers and SMB entrepreneurs, using The Bancorp Bank as its sponsor bank for deposit accounts. After raising a $20M round and appointing a new CEO in 2023, the company pivoted away from active consumer banking; by March 2024, its banking services had been paused and The Bancorp Bank ended the deposit program. The current oxygen.us homepage indicates the company is pursuing 'new and exciting initiatives' under parent entity Vativis, signaling a potential relaunch or pivot rather than a full shutdown.
Oxygen discloses The Bancorp Bank, N.A. (sponsor bank, program ended March 2024) as its banking provider, with The Bancorp Bank, N.A. as its sponsor bank, according to the Embedded Finance Index 2026.
Oxygen does not disclose a bank charter of its own; its banking services are provided through The Bancorp Bank, N.A..
Oxygen connects to bank accounts through Plaid.
The Embedded Finance Index 2026 maps 3 layers in Oxygen's stack: Banking / BaaS (The Bancorp Bank, N.A. (sponsor bank, program ended March 2024)); Open banking (Plaid); Sponsor bank (The Bancorp Bank, N.A.).
Oxygen is founded in 2018 and headquartered in Princeton, NJ, USA.
Oxygen has raised $20M+ in total (latest round: Series B (implied), 2023).
Get a read on where your own stack stands against Oxygen and the rest of its category — what they built versus bought, which providers they use, and where the gaps in your own strategy and competitive set actually are.