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Some of the world’s biggest cryptocurrency exchanges have started shifting their business on-chain, blending CEX stability with features only DEX users typically have access to.
A hybrid model is emerging that delivers blockchain benefits through a familiar TradFi UI: User-friendly in the front, blockchain-powered in the back.
Will it be enough to de-risk DeFi for a mainstream finance audience?
Leaving the conventional brokerage model behind
Coinbase, Bybit, and Binance have all announced changes that weave Web3 protocols into their Web2 platforms.
Why would they want to risk venturing on-chain? Decentralized finance protocols can be notoriously difficult for end users, and there are long-standing concerns about security and regulatory oversight in this space.
The truth is that DeFi is growing too quickly to ignore, worth an estimated $20 billion last year and forecast to reach $230 billion by 2030 — an annual CAGR of 50%.
Double-digit CAGR is in the cards for CEXs too. But DeFi has almost double the momentum. They don’t want to be left behind.
And that’s a real risk. Centralized exchanges are basically modelled on conventional brokerages. They operate in ways that are familiar to everyday retail traders, but their technical infrastructure makes …