1inch Shifts to DeFi Infrastructure, Centralized Exchanges to Transition to DEX Frontends Over Next Five to Ten Years
ByAinvest
Thursday, Oct 2, 2025 3:45 pm ET2min read
COIN--
The latest updates to 1inch's cross-chain swaps and route discovery algorithm have demonstrated improved swap execution, with most platform volume now coming from API integrations. This shift is part of a broader trend in the crypto space, where exchanges are transforming into "universal exchanges" (UEXs) that offer tokenized real-world assets, on-chain trading, and prediction markets. The total value locked (TVL) in DeFi has risen to $163 billion in 2025, indicating sustained demand for decentralized financial services [1].
Coinbase's recent integration of 1inch's Swap API into its app is a significant example of this trend. By bringing non-custodial, on-chain token swapping capabilities directly to its decentralized exchange (DEX) feature, Coinbase is enabling users to perform secure and seamless token swaps via a self-custodial wallet without leaving the Coinbase ecosystem. With approximately 120 million monthly users, Coinbase represents the largest U.S.-based integration for 1inch, a prominent decentralized finance (DeFi) aggregator that handles over $500 million in daily trading volume [1].
The integration further expands Coinbase's growing decentralized offerings, following its August DEX launch aimed at providing access to "millions" of previously unavailable digital assets. Scott Shapiro, Head of Trading at Coinbase, said, "Our integration with 1inch is a significant step forward in bringing on-chain trading to our users. Together we're enabling seamless access to DEXes within the Coinbase app, which will bring millions of our users on-chain" [1].
The partnership is also a milestone for 1inch's SaaS-based business segment, 1inch Business, which aims to connect centralized and traditional financial institutions with advanced DeFi technologies. As more major platforms like Coinbase turn to 1inch to power on-chain services, the aggregator strengthens its role as a key access point to decentralized liquidity. 1inch co-founder Sergej Kunz commented, "We are no longer just looking to unify DeFi; our vision extends to all financial markets. 1inch’s non-custodial swap products are the ideal solution for centralized players across both crypto and TradFi as they move to bring assets on-chain in a seamless and secure way" [1].
The collaboration comes amid a broader shift in the crypto space, with exchanges increasingly transforming into "universal exchanges" (UEXs) that offer tokenized real-world assets, on-chain trading, and prediction markets. The total value locked (TVL) in DeFi has risen to $163 billion in 2025, indicating sustained demand for decentralized financial services [1].
Meanwhile, 1inch continues to expand its reach, having recently enabled native swaps between Solana and EVM networks. Since its inception in 2019, the platform has routed over $748 billion in trade volume across hundreds of liquidity sources [1].
DEFT--
1INCH--
SOL--
1inch, a decentralized exchange (DEX) aggregator, has pivoted to become a DeFi infrastructure provider, offering on-chain routing and liquidity aggregation tools to exchanges and wallet vendors through API integrations. Centralized exchanges are expected to adopt non-custodial on-chain routing, potentially transitioning to DEX frontends over the next five to ten years. Recent updates to 1inch's cross-chain swaps and route discovery algorithm claim improved swap execution, with most platform volume now coming from API integrations.
1inch, a prominent decentralized exchange (DEX) aggregator, has shifted its focus to become a DeFi infrastructure provider, offering on-chain routing and liquidity aggregation tools to exchanges and wallet vendors through API integrations. This strategic pivot comes as centralized exchanges are increasingly adopting non-custodial on-chain routing, which could lead to a significant transition to DEX frontends over the next five to ten years.The latest updates to 1inch's cross-chain swaps and route discovery algorithm have demonstrated improved swap execution, with most platform volume now coming from API integrations. This shift is part of a broader trend in the crypto space, where exchanges are transforming into "universal exchanges" (UEXs) that offer tokenized real-world assets, on-chain trading, and prediction markets. The total value locked (TVL) in DeFi has risen to $163 billion in 2025, indicating sustained demand for decentralized financial services [1].
Coinbase's recent integration of 1inch's Swap API into its app is a significant example of this trend. By bringing non-custodial, on-chain token swapping capabilities directly to its decentralized exchange (DEX) feature, Coinbase is enabling users to perform secure and seamless token swaps via a self-custodial wallet without leaving the Coinbase ecosystem. With approximately 120 million monthly users, Coinbase represents the largest U.S.-based integration for 1inch, a prominent decentralized finance (DeFi) aggregator that handles over $500 million in daily trading volume [1].
The integration further expands Coinbase's growing decentralized offerings, following its August DEX launch aimed at providing access to "millions" of previously unavailable digital assets. Scott Shapiro, Head of Trading at Coinbase, said, "Our integration with 1inch is a significant step forward in bringing on-chain trading to our users. Together we're enabling seamless access to DEXes within the Coinbase app, which will bring millions of our users on-chain" [1].
The partnership is also a milestone for 1inch's SaaS-based business segment, 1inch Business, which aims to connect centralized and traditional financial institutions with advanced DeFi technologies. As more major platforms like Coinbase turn to 1inch to power on-chain services, the aggregator strengthens its role as a key access point to decentralized liquidity. 1inch co-founder Sergej Kunz commented, "We are no longer just looking to unify DeFi; our vision extends to all financial markets. 1inch’s non-custodial swap products are the ideal solution for centralized players across both crypto and TradFi as they move to bring assets on-chain in a seamless and secure way" [1].
The collaboration comes amid a broader shift in the crypto space, with exchanges increasingly transforming into "universal exchanges" (UEXs) that offer tokenized real-world assets, on-chain trading, and prediction markets. The total value locked (TVL) in DeFi has risen to $163 billion in 2025, indicating sustained demand for decentralized financial services [1].
Meanwhile, 1inch continues to expand its reach, having recently enabled native swaps between Solana and EVM networks. Since its inception in 2019, the platform has routed over $748 billion in trade volume across hundreds of liquidity sources [1].
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