Is CeDeFi the New Path for CEXs? A Full Analysis of the “On-chain Wave” Among Centralized Exchanges
Introduction
Binance Alpha, a new attempt by Binance to integrate DeFi into its trading platform, has become an undeniable focal point — regardless of whether it ultimately succeeds.This is a DeFi-based listing platform that allows retail users to access early-stage tokens faster than through traditional exchange channels. Binance Alpha increases token accessibility and participation, facilitating targeted airdrops for users.
With Binance Alpha’s launch, one trend has become clear: Centralized exchanges are no longer bystanders in the DeFi ecosystem — they are now active participants.Put simply: More and more CEXs are quietly moving on-chain.Leading CEXs like Binance, Bybit, and Coinbase are no longer satisfied being mere “Web3 intermediaries.” They are stepping onto the field themselves, playing a new game called CeDeFi (Centralized + Decentralized Finance).
So here’s the question: Why would these profitable, user-sticky CEX platforms willingly dive into the high-risk, fast-paced, uncertain world of DeFi?Is it out of fear? A new strategy? Or perhaps…it’s simply their destiny?
Today, we’ll discuss this growing CeDeFi trend and explore whether it’s a self-rescue operation, or the doorway to the next phase of the crypto world.
What Is CeDeFi? Let’s Get the Basics Straight
First, let’s align on definitions: CeDeFi is not a new protocol. It’s a hybrid architecture.Put simply: CEX + DeFi = CeDeFi
It aspires to combine DeFi’s permissionless, on-chain transparency and openness with CEX’s control, security, and user experience.Can you have the best of both worlds?
Over the past few years, the answer has gradually emerged:At least for these top CEXs — they’re addicted.
Why Are CEXs Crowding Into DeFi? Several Clues Explain It
Binance launched the Alpha platform, where users earn Alpha Points to join new token airdrops — no wallet required, zero friction.
Bybit created ByReal, a decentralized platform on Solana focusing on high liquidity and project incubation.
Coinbase launched a dual-track strategy, one targeting retail users and another building Verified Pools to serve institutions.
These major platforms are racing to embed themselves into DeFi scenarios.But the real reasons go far beyond product iteration.
Three Core Drivers Behind the “On-chain Pivot” of CEXs
- Why Must CEXs Move On-chain? Capturing Early Liquidity Is Vital
In the past, CEXs could reliably profit because tokens listed first on centralized exchanges, then rallied.But now? New tokens almost always debut directly on DEXs — no exchange approval needed, instant listing, instant liquidity, instant hype.
The result? CEXs have become reactive, missing the early upside. By the time they list a token, the main trading window is already gone.Add tightening global regulation and slower review cycles, and the lost opportunity gets even worse.
This is where platforms like ByReal and Binance Alpha become “quasi-exchanges” — without formal listing, users can still join project liquidity early, sidestepping regulatory delays while staying engaged.This is the pragmatic compromise: Not formally listed, but tradable. No separate wallet, but fully interactive.
- User Attrition Forces CEXs to Transform — Web3 Retention Requires a Seamless “Experience Loop”
You’ve probably noticed: Many seasoned users are spending less time on CEXs.They’re on-chain hunting new tokens, exploring new L2s, farming airdrops, staking for yields.And crucially — none of this is possible on a traditional CEX.CEXs have nearly exhausted their user growth dividend. If they keep letting existing users drift away, it’s a recipe for decline.
So, they’ve chosen reverse compatibility:Don’t let users go to DEXs — bring the DEX to them.
Examples:
Coinbase integrated DeFi features directly into its main app — no interface switching, no seed phrases, fully native access to on-chain tokens.
Bybit introduced RFQ + CLMM mechanisms, combining on-chain market making with a centralized trading experience.
Binance went all-in on “ultra-simple participation” — users can join on-chain projects just by clicking a few buttons in their CEX accounts.
The underlying strategy is clear: Keep users anchored in their own ecosystem, preventing them from flowing to external protocols.
- Exchange Tokens’ “New Mission”: From Fee Coupons to “CeDeFi Assets”
BNB showed everyone the blueprint:If a token is only used to offset trading fees, it will never support a long-term narrative.But once it can:
Unlock on-chain functionality
Grant early access to new project sales
Be used in Launchpad participation, governance, staking
Then it is no longer a “utility point,” but a true platform asset.
Next up: Bybit’s BIT, Coinbase’s potential new tokens, OKX’s OKB — these will all be reimagined under CeDeFi as core chain assets of their ecosystems.This will mark a second life for exchange tokens, whose utility will span on-chain and off-chain, becoming indispensable in the new landscape.
A Quick Rundown: The Three Giants’ CeDeFi Playbooks
Binance Alpha: Zero-barrier “On-chain Sandbox”
Fully operable inside the Binance App — account-linked, no separate wallet needed.
Participate in token sales before official listing — extremely smooth UX.
Users earn Alpha Points to join new project airdrops.
Bybit ByReal: A DEX-style CEX on Solana
Self-developed platform + project incubation + yield products — all integrated.
CLMM + RFQ hybrid system for optimized liquidity.
Focused on early project launches and on-chain yield strategies.
Unlike Binance, ByReal feels more like a DeFi playground under a CEX umbrella.
Coinbase Strategy: Dual Focus on Retail and Institutions
Retail users can access DeFi trading directly in the main app.
Institutions can use Verified Pools, fully KYC-compliant.
On-chain trading is “invisibly integrated,” massively lowering barriers.
Perfect for newcomers or institutions demanding high UX standards.
How Far Can This “On-chain Wave” Go? Three Predictions
CeDeFi Is Not a Phase — It’s the Future Path of CEXs
Judging by current product momentum and sector trends, CEXs won’t turn back.CeDeFi is their core track for the next bull cycle.Whoever builds the best on-chain experience will capture the next generation of users.Exchanges Will Dominate DeFi Integration — DEX Decentralization Will Shrink
As Binance, Bybit, and other giants lead the construction of DEX experiences, independent native DeFi protocols will face intense competitive pressure.DEXs will no longer be free zones — they’ll be integrated into larger commercial ecosystems.Exchange Tokens Will Evolve into “Ecosystem Tokens”
In the future, holding BNB, BIT, OKB won’t just mean trading discounts.These tokens could be:
Your ticket to an on-chain Launchpad
Your gateway to RWA investments
Your key to staking, governance, custody
Owning these tokens will be equivalent to owning a piece of the platform’s future.
Conclusion: Is CeDeFi the Next Big Wave?
At its core, CeDeFi is the direct response of traditional crypto platforms to growth anxiety.Centralized exchanges can’t fully decentralize — but they don’t want to be outflanked by DeFi either.What they’re searching for is a balance point.
It’s clear: CEXs and DeFi are not adversaries anymore — they’re merging into a new hybrid ecosystem.
CeDeFi is not “neutral ground.” It is the next main battlefield.
Note: This article does not constitute any subjective stance or investment advice. It is an objective analysis of market trends only.
