DeFi Needs More Regulatory Experience, And TradFi Is Happily Providing It

Rise of Traditional Financial Institutions in Crypto


The crypto industry’s lack of concrete regulations has drawn traditional financial institutions into the space to cater to growing numbers of institutional investors.

TradFi institutions are entering crypto to seize business opportunities, driven by a growing demand from institutional investors.

CME Makes Its Mark On bitcoin

Recently, the Chicago Mercantile Exchange (CME) surpassed Binance as the top bitcoin futures exchange, with a reaching $4.07 billion in open interest, ahead of Binance’s $3.8 billion.

This trend showcases growing institutional demand for bitcoin as TradFi institutions use CME’s tightly regulated platform.

Stablecoins Becoming Fiat-Like

Investors are now looking for qualities such as transparent backing, developed payment rails, liquidity and yield in stablecoins.

Traditional Finance Competition for Cryptocurrency Exchanges

Traditional institutions are looking to take advantage of the growing uncertainty around crypto exchanges and are venturing into the industry.

DeFi/TradFi Hybrids

Platforms like are part of the first generation of “hybrid institutions” that operate across both decentralized and centralized finance.

This integration between DeFi and TradFi has the potential to catalyze even more rapid innovation in the space, providing greater liquidity and rewards to developers, investors and users.

Positive Impacts of TradFi Integration with Crypto

The integration of DeFi and TradFi is likely to accelerate the journey to a more equitable financial world. More institutional investors entering the crypto space will lead to a more robust ecosystem and greater legitimacy and diversity within the industry.

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By Team