Cryptocurrency firms are increasingly integrating with traditional finance by launching conventional investment products. Bitget’s CEO, Gracy Chen, discussed this synergy as essential for both security and adoption. Kraken has expanded into traditional stocks, while Coinbase aims to modernise finance by moving global GDP onto crypto platforms. The mutual relationship between digital and traditional assets promises new opportunities for investors.
Cryptocurrency firms are increasingly adapting to traditional financial environments by introducing conventional investment products. This trend highlights a developing synergy between the cryptocurrency sector and traditional finance (TradFi). Gracy Chen, CEO of Bitget, noted that crypto players are exploring TradFi opportunities to create a bridge between the two domains.
Chen emphasised the importance of flexibility and a blend of offerings appealing to investors. She stated that while some see TradFi as a means of security, others view it as a platform for widespread crypto adoption. Furthermore, she contended that integration is preferable in volatile markets rather than remaining isolated.
The shift was exemplified last week when Kraken introduced access to 11,000 US-listed stocks and exchange-traded funds (ETFs), marking its initial move into the traditional financial arena. This announcement followed significant market losses linked to tariffs imposed by US President Trump, thereby highlighting the need for new investment opportunities.
Additionally, Coinbase’s CEO Brian Armstrong shared a similar vision during their earnings call, expressing the company’s aim to enhance the global financial system by transitioning a larger portion of global GDP to cryptocurrency. He believes this evolution will foster a more efficient and equitable economy while providing greater economic freedom.
A Coinbase spokesperson stated the relationship between digital and traditional assets is mutualistic, with their mission focused on integrating traditional finance into the crypto world. They anticipate that as regulatory frameworks clarify and institutional interest grows, more economic activity will transition onto crypto platforms.
Omri Hanover, from the cryptocurrency platform Gems Trade, noted that blockchain technology contributes speed and transparency, while TradFi provides trust, scalability, and compliance. This convergence creates new investment paths for retail and institutional investors looking to engage with digital assets without the complexities of the crypto environment. Additionally, platforms like eToro and Robinhood are already offering cryptocurrency products, further evidencing this trend.
