In a notable shift within the cryptocurrency landscape, leading exchanges are transforming into multifunctional platforms by integrating decentralized finance (DeFi) features. Research from Animoca Brands suggests that this evolution is paving the way for the rise of so-called “Universal Exchanges” (UEXs), which aim to offer users a comprehensive suite of services beyond merely trading digital currencies.
The report, shared with The Defiant, highlights that UEXs could attract a broader audience thanks to their ability to provide a variety of options, including on-chain tokens and tokenized versions of real-world assets. While centralized exchanges (CEXs) have played a crucial role in the expansion of the crypto market, the growth in their user base is witnessing a slowdown. Analysts point out that innovative tools, such as the memecoin launchpad Pumpfun, alongside decentralized exchanges (DEXs), are diverting users away from traditional trading activities.
To maintain relevance in an increasingly competitive environment, major exchanges are proactively incorporating features such as wallets, on-chain trading capabilities, and DeFi functionalities. Scott Shapiro, head of trading at Coinbase, explained that the integration of DeFi within centralized finance is essential for creating a more holistic and user-friendly experience. He emphasized that these advancements unlock access to new asset classes and millions of on-chain assets while delivering a familiar interface for traders.
“This vision aligns with our overarching objective of evolving into the ‘everything exchange.’ We aim to empower traders to explore diverse opportunities, whether through DEX trading, perpetual futures, prediction markets, or tokenized equities,” Shapiro remarked.
Animoca’s findings also mention that CEXs are beginning to offer DEX tokens. Platforms like Binance Alpha and Bitget Onchain now enable users to trade digital assets that were previously exclusive to decentralized marketplaces. While outreach to Binance for comments yielded no response, Gracy Chen, CEO of Bitget, articulated that the next wave of financial innovations will include applications that rival conventional banks and traditional financial entities. She suggested that future exchanges will integrate the trusted security features of CEXs with the asset accessibility provided by DEXs, in addition to the tokenized stocks and bonds familiar from traditional finance.
Animoca’s report connects the UEX trend to recent regulatory reforms. The new pro-crypto regulations emerging in the U.S. are easing the process for exchanges to bring real-world assets onto blockchain platforms, thus opening doors for traditional investors to engage with cryptocurrency without having to navigate the complexities of on-chain operations.
When questioned about the potential regulatory implications of combining DeFi features with centralized finance, Chen asserted that many products currently exist in a legal gray area. She noted that custodial and non-custodial services remain distinct; however, hybrid trading models like UEXs are anticipated to encourage regulators to develop updated frameworks that embrace the advantages of decentralization while ensuring user protection.
As the cryptocurrency ecosystem continues to grow and evolve, the transition from solely centralized to integrated, multifunctional platforms reflects the market’s adaptability to emerging trends, particularly the increasing demand for DeFi products. The ongoing movement towards UEXs could reshape how individuals and institutions approach crypto trading and investment.
