Crypto exchanges are quietly evolving into an all-in-one platform as new Defi and on-chain tools keep users away from simply trading digital assets.
Centralized crypto exchanges are increasingly embedding Defi functionality into the platform. It suggests that Animoca BrandsResearch could lead to becoming a so-called “universal exchange” or UEXS.
In a report shared with the rebels, analysts said UEXS could gain popularity among a larger audience as it offers more than just a transaction, such as on-chain tokens and tokenized real-world assets.
While centralized exchange (CEXS) has been the center of Crypto’s growth for many years, it adds that growth for Crypto-Native users is slowing down, adding that new tools like MemeCoin LaunchPad PumpFun and Decentralized Exchanges (DEXS) are pulling users apart.
To stay relevant, analysts added that large exchanges are increasingly adding wallets, on-chain transactions and debt functions.
In Defiant’s commentary, Scott Shapiro, trading director at Exchange Coinbase, cryptocurrency, explained that bringing Defi to the central financial space is “the right path in creating a more universal experience,” adding that these updates “unlock access to new asset classes and millions of on-chine assets, while maintaining familiar experiences.”
“This idea is reflected in our broader goal of becoming an ‘Everything Exchange’. It empowers traders to explore new opportunities through predictive markets and tokenized stocks through DEX trading and a lasting future,” Shapiro told the rebels.
Future revolution
Animoca’s research points out that CEXS also integrates Dex Tokens. Platforms such as Binance Alpha and Bitget Onchain allow users to exchange tokens that were previously only available on decentralized platforms. The rebel reached for Binance, but did not hear a response by press time.
Bitget CEO Gracy Chen told Defiant that the next generation of financial products will “become an app that challenges banks and traditional financial institutions,” saying the platform will integrate access to DEXS’ tokens with CEXS’ security along with Tradfi’s iconic stocks and bonds.
Animoca said the trends in UEX are related to policy changes. New US procrypt regulations make it easier for exchanges to keep real-world assets in chains, opening up opportunities for traditional investors to try crypto without navigating complex on-chain mechanics.
Addressing whether integrating Defi into CEFI would present regulatory challenges, Chen explained that many products and services “still have grey areas.”
She added that for now, “custom and non-lawful products are separated,” but hybrid models such as UEXS “a little bit pushing regulatory authority over time to build a framework that recognizes the benefits of decentralization while protecting users.”