Crypto Firms Expand into Traditional Finance, Blurring Lines

Cryptocurrency firms and exchanges are increasingly expanding into traditional finance, launching more conventional investment offerings and showcasing the growing synergy between crypto and traditional finance (TradFi).

“There’s a growing synergy between traditional financial investments and the emerging crypto space,” said Gracy Chen, the CEO of Bitget, the world’s sixth-largest crypto exchange. “Crypto players are now checking out traditional finance as they see the opportunity to bridge it,” Chen said. “The lines are blurring — investors want flexibility, and products that can straddle both worlds are naturally attractive,” Chen added. “Some players see TradFi as a safety net; others, like Bitget, see it as a launchpad for broader adoption.” She further stated, “In a volatile market, integration is smarter than isolation.”

This trend was highlighted when crypto exchange Kraken launched access to 11,000 US-listed stocks and exchange-traded funds (ETFs) as part of its global expansion into TradFi offerings. This move came after the S&P 500’s record-breaking two-day loss of over $5 trillion, triggered by US President Donald Trump’s reciprocal import tariffs announcement.

Coinbase CEO Brian Armstrong shared a similar vision. During the company’s latest earnings call, Armstrong said Coinbase aims to help modernize the global financial system and bring more of the world’s GDP onto crypto rails. “We think that's a more efficient, fair, free world that will accelerate progress, and it creates economic freedom,” he said during Coinbase’s latest earnings call.

The relationship between digital assets and more traditional assets is inherently symbiotic. A spokesperson for Coinbase, the world’s third-largest crypto exchange, said, “Core to our mission to enable economic freedom by onboarding one billion users to crypto, is supporting more of ‘traditional finance’ to be integrated with crypto.” “As regulatory clarity and institutional adoption increase globally, we expect more of the global GDP to be running on crypto rails,” the spokesperson added.

Blockchain technology brings “speed and transparency” while TradFi introduces “trust, scale and compliance,” in an “inevitable convergence,” said Omri Hanover, general manager at Gems Trade cryptocurrency platform. “Together, TradFi and crypto unlock new pathways for both retail and institutional investors, especially those seeking exposure to digital assets without navigating the full complexity of native crypto products,” he explained.

Traditional investment platforms such as eToro and Robinhood have also launched cryptocurrency offerings, further blurring the lines between crypto and traditional finance. This trend indicates a growing acceptance and integration of cryptocurrency into the broader financial ecosystem, driven by the desire for flexibility and the potential for broader adoption.