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Some of the world's biggest cryptocurrency exchanges have started shifting their business on-chain, blending CEX stability with features only DEX users typically have access to.

A hybrid model is emerging that delivers blockchain benefits through a familiar TradFi UI: User-friendly in the front, blockchain-powered in the back.

Will it be enough to de-risk DeFi for a mainstream finance audience?

Leaving the conventional brokerage model behind

Coinbase, Bybit, and Binance have all announced changes that weave Web3 protocols into their Web2 platforms.

Why would they want to risk venturing on-chain? Decentralized finance protocols can be notoriously difficult for end users, and there are long-standing concerns about security and regulatory oversight in this space.

The truth is that DeFi is growing too quickly to ignore, worth an estimated $20 billion last year and forecast to reach $230 billion by 2030 — an annual CAGR of 50%.

Double-digit CAGR is in the cards for CEXs too. But DeFi has almost double the momentum. They don't want to be left behind.

And that's a real risk. Centralized exchanges are basically modelled on conventional brokerages. They operate in ways that are familiar to everyday retail traders, but their technical infrastructure makes it hard to penetrate the on-chain space.

Recent announcements suggest the big CEXs are moving on from being matching platforms and evolving into deeply-integrated trading networks that fuse on-chain and off-chain benefits:

Coinbase Offers DEX Access Through Its CEX

On June 12, 2025, Coinbase announced it was integrating DEXs on its proprietary Base blockchain with its centralized exchange business, with plans in the pipeline to add DEXs from other blockchains.

For end users, the move opens up access to thousands of altcoins but without Ethereum's (ETH) gas fees, though Coinbase's trading fee structure still comes into play.

For big Base-built DEXs like Aerodrome, having a direct link to the mainstream Coinbase exchange has been a major boost. Its AERO token has spiked since the announcement.

It's not the first time Coinbase has tried to leverage its Web2 footprint on-chain. The exchange's wrapped token for Bitcoin, cbBTC, was bootstrapped using Coinbase as the primary rail to attract liquidity and users.

With direct access to Base's lending markets, cbBTC holders can now borrow USDC using Bitcoin (BTC) as collateral, without leaving the Coinbase app.

Binance Aims for Wallet Share

In May, Binance launched its Alpha campaign, a series of trading contests that reward users with "Alpha Points" that can be used to buy selected digital assets, which users receive later in the form of airdrops. It's meant to encourage support for new projects and build grassroots engagement.

The approach has many steps, but Binance appears to have its eye on growing wallet use and participation in its on-chain ecosystem. To use Alpha points, they have to be traded through Binance's keyless Binance Wallet. This could be a way to funnel more users into Binance's proprietary DeFi services via the BNB blockchain.

It seems to be working. PancakeSwap is the tool enabling Alpha token trades, and its volumes have surged since Alpha's May launch.

Bybit Launches a Hybrid Exchange

On June 15, 2025, Bybit announced the launch of Byreal, a new Solana DEX that promises a hybrid exchange model that leverages centralized liquidity sources with decentralized execution. The combination should enable Byreal to route trades more profitably.

Positioned as an extension of Bybit rather than a new product, Byreal's design will see it route transactions via mechanisms called Concentrated Liquidity (CLMM) and Request for Quote (RFQ).

The idea is to unify liquidity sources and increase protection against MEV tactics by miners and validators. Execution is provided by market makers or liquidity providers, depending on the coin and conditions attached to the trade.

The take away

Three centralized exchanges, three on-chain strategies. Combined, they're loudly signalling that the on-chain economy has moved to a new phase of maturity. DeFi is demonstrating stability and security — two baseline requirements for regulated CEXs to integrate blockchain infrastructure into their technology stacks.

While the convergence gives big-name exchanges an on-chain presence, it also marks the start of a new model. We may be witnessing the birth of a crypto trading paradigm.