The Game between TradFi and encryption trading platforms

Veteran of the financial industry still holds meetings late at night. He works in a siheyuan in the Xicheng District of Beijing, dealing with issues such as regulation, business cooperation, and project scheduling. As an experienced financial professional, he has gone through the last financial crisis and has navigated the global markets for many years; now he has turned to the field of virtual assets.

TradFi has long been concerned with Web3. As early as 2018, a certain trading platform launched Bitcoin and Ethereum trading features. Initially, it was just a supplement to the product line, but a few years later it became a breakout point. In the fourth quarter of last year, cryptocurrencies contributed over 35% of the platform's total net income, with trading volume surging by 455%, driving trading revenue to increase by 733% year-on-year, reaching $358 million, becoming the largest source of income.

Subsequently, traditional financial institutions began to collectively enter the market. In 2025, several large financial institutions announced the launch of Bitcoin trading services. These giants control global funding channels, clearing networks, and payment systems, managing hundreds of trillions of dollars in assets. They are gradually laying out their plans in the encryption field based on traditional compliance frameworks.

For a long time, encryption trading platforms defined narratives through listing coins and controlled liquidity through deposits. However, today, the role of "asset entry" is being reclaimed by TradFi. An industry insider stated that encryption trading platforms may no longer be the only issuers at the financial table.

Faced with challenges, encryption platforms are launching stock token products one after another. Some platforms have completed the research and development of US stock token products and launched them within two months, believing that the years of accumulated user base and liquidity are advantages. However, some believe that this is more like a passive defense.

Data shows that the coin-stock model gained attention shortly after its launch, but the activity level quickly declined. In contrast, some popular tokens on certain blockchains performed much better during the same period.

Compliance has become a focal point in the industry, but in the eyes of TradFi individuals, many platforms still have a thin understanding of compliance. Licenses from some small countries are difficult to gain real recognition and cannot be integrated into the mainstream financial system. The traditional financial system is built on chains of responsibility and trust loops, while encryption platforms often grow in the gaps of the system.

Some platforms are actively adjusting, introducing compliance audits, and establishing offshore trust structures, among other measures. Some platforms have obtained relevant licenses in Europe and have established their European headquarters in Vienna. However, such cases are still rare. Most platforms lack licenses and trust endorsements within the TradFi system, and have also lost the high growth dividends brought by the institutional vacuum.

The encryption trading platform is on the edge of a new order, slowly being pushed out of the core by an invisible layer of rules. More complex systems and larger capital are replacing the original narratives and structures. Their modes of expression, rhythm of voice, and the context in which they are integrated are all changing, trying to maintain a sense of presence without being eliminated by the times.

However, not everyone is pessimistic. Some believe that encryption's impact on TradFi is greater than the latter's squeeze on trading platforms. Each round of evolution in the industry requires new players, and the two financial worlds are intersecting and merging.

Currently, many questions still have no clear answers. Will regulators truly allow encryption trading platforms? Is TradFi willing to co-build instead of replace? Before the next round of industry themes arrives, do encryption platforms still have a chance to redefine themselves? Industry insiders are maintaining the status quo while waiting for the opportunity for the industry to be reshuffled.