Why CoinEx Believes DeFi and Traditional Finance Can Coexist
In Brief
Jeff Ko emphasized DeFi’s coexistence with traditional finance, highlighting the need for better usability, liquidity solutions, AI-driven innovations, and secure cross-chain transactions to drive mainstream adoption.
Jeff Ko, Research Chief Analyst at CoinEx, discussed the evolving landscape of DeFi, the role of centralized exchanges, and CoinEx’s strategy for innovation. While DeFi is gaining traction, Jeff believes that user experience, accessibility, and integration with traditional finance will shape its growth.
For DeFi to reach mass adoption, usability must improve. Jeff emphasized that DeFi platforms need to prioritize a user-centric design, similar to how centralized exchanges like CoinEx focus on seamless infrastructure and intuitive trading experiences. Many DeFi applications still have high technical barriers, and simplifying interfaces, wallet setups, and transaction processes will be crucial for onboarding new users.
DeFi vs. Traditional Finance
Jeff, with his background in traditional banking, does not see DeFi replacing savings accounts or traditional ledgers. Instead, he views crypto as a new asset class that complements existing financial markets. Institutional investors are now allocating funds across various asset classes, including equities, fixed income, private equity, and now crypto. Rather than replacing traditional finance, DeFi represents an emerging sector that will exist alongside established financial systems.
When asked whether DeFi could overtake traditional banks by 2030, Jeff was skeptical. He pointed out that the total value locked in DeFi is still a fraction of the traditional financial market. Bitcoin’s market cap, for example, is still only a small fraction of gold’s value. However, he acknowledged that the integration of AI with DeFi could be a game-changer, potentially driving a new wave of innovation and adoption in the next market cycle.
CoinEx’s Strategy: Differentiating from DEXs and Expanding Accessibility
As DEXs gain popularity, CoinEx remains competitive by offering features that enhance liquidity, enable cross-chain transactions, and simplify trading. Jeff described CoinEx as a multi-chain liquidity hub, offering efficient and cost-effective cross-chain asset transfers that outperform some decentralized bridges, which can be slow, expensive, or vulnerable to exploits.
One key advantage of CoinEx is support for diverse blockchain ecosystems, including niche and emerging protocols. Many new ecosystems require complex wallet setups and technical knowledge, which deters retail users. CoinEx simplifies access by integrating a wide range of token standards and supporting liquidity for these networks.
Additionally, CoinEx has strong expertise in PoW ecosystems, which many DeFi protocols struggle to integrate due to the lack of smart contract functionality on PoW chains. Thanks to CoinEx’s background in BTC mining, the exchange provides efficient trading solutions for PoW assets, catering to miners and PoW communities.
AI, Restaking, and Asset Security
Jeff highlighted CoinEx’s commitment to continuous product innovation, particularly in AI-driven market analysis, risk alerts, and automated trading strategies. Recent developments include CoinEx Mining, which allows users to earn new tokens by holding CET, CoinEx’s exchange token; Pre-Market Trading, which enables users to trade event-driven tokens before their official TGE; and CoinEx Staking.
Bitcoin restaking has also been enabled through CoinEx Wallet with Babylon, while the exchange is exploring secure ways to integrate DeFi restaking solutions. CoinEx Vault, a new asset security management system, is being developed to offer a secure, intelligent, and flexible storage solution for crypto assets.
CoinEx’s Vision for a More Accessible Crypto Ecosystem
CoinEx is not just adapting to DeFi’s growth—it is actively shaping the future of centralized and decentralized finance convergence. By lowering entry barriers, improving liquidity solutions, and developing innovative financial products, CoinEx aims to make crypto trading more accessible, secure, and efficient for both retail and institutional users.
Disclaimer
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About The Author
Victoria is a writer on a variety of technology topics including Web3.0, AI and cryptocurrencies. Her extensive experience allows her to write insightful articles for the wider audience.
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Victoria is a writer on a variety of technology topics including Web3.0, AI and cryptocurrencies. Her extensive experience allows her to write insightful articles for the wider audience.
