Centralized cryptocurrency exchanges are increasingly merging traditional finance (TradFi) with the digital currency realm, and recent data indicates this trend is accelerating rapidly. The process of TradFi tokenization involves representing conventional assets, such as stocks and bonds, as digital tokens on a blockchain, enabling investors to trade these assets on cryptocurrency exchanges. One of the most compelling advantages of this integration is the ability for users to engage in trading 24/7, along with reduced barriers to entry compared to traditional markets.
Bitget, a centralized cryptocurrency exchange established in 2018, has been at the forefront of this evolution. In January, the platform introduced Bitget TradFi, enhancing access to tokenized versions of global foreign exchange, commodities, indices, metals, and contracts for difference (CFDs) under its Universal Exchange framework. Bitget’s Transparency Report from January 2026 revealed that users were trading approximately $4 billion daily in tokenized TradFi products. Remarkably, the daily trading volume for these TradFi offerings doubled from $2 billion within just two weeks, illustrating a significant shift in the operational landscape of centralized exchanges.
Despite the rising interest in TradFi products, crypto trading remains the primary focus for Bitget, representing 88.25% of the total trading volume on the platform. In contrast, tokenized TradFi products contributed roughly 11-12% of the total volume. These trends suggest an emerging hybrid model where exchanges provide both traditional financial instruments and digital assets such as Bitcoin and Ether.
Bitget’s CEO Gracy Chen explained that the surge in trading activity reflects users’ preference for managing various positions through a single account, effectively removing the barriers between traditional market hours and crypto trading. “TradFi-linked products tend to scale quickly because traders want to hedge, rotate and react when default platforms are closed,” Chen stated, emphasizing that traders prefer the simplicity of operating within one system rather than dealing with multiple accounts and workflows.
She further articulated a vision for the future, indicating that as centralized exchanges (CEXs) consolidate liquidity, they will enable predictable execution, while decentralized finance (DeFi) platforms will serve as open layers for asset settlement, lending, and risk management. According to Chen, the growth of TradFi services will lead to increased activity in tokenized foreign exchange, metals, and indices, which will subsequently heighten the demand for stablecoin settlements.
Moreover, Bitget’s proof-of-reserves disclosures illustrate how major exchanges can leverage robust balance sheets and on-chain verifications to enhance user trust. The company reported an average reserve ratio of 163%, with specific percentages for Bitcoin and Ether standing at 254% and 161%, respectively. This high reserve ratio allows top CEXs to confidently assert that they hold excess funds to cover user deposits, a significant reassurance for traders.
Chen underscored the importance of transparency, stating that clear definitions of tokenized instruments, effective price formation mechanisms, and straightforward margin and liquidation processes are essential for sustaining TradFi volume and transitioning it into on-chain usage. Without these elements, trading activity might remain fleeting and fail to achieve a broader reach.
Rather than positioning itself in direct competition with DeFi, Bitget might compel DeFi to refine its focus on specific areas such as liquidity pools and settlement infrastructures, leaving CEXs to attract the majority of retail investment seeking accessible and regulated exposure to global markets.
This evolving landscape illustrates the potential for centralized and decentralized platforms to coexist, each focusing on their strengths, as the line between traditional finance and cryptocurrency continues to blur.
