This article will systematically analyze the background of the rise of TradFi, the definition and mechanism of TradFi, and the differences between TradFi and perpetual contracts.

Introduction

In the past year, with the rise of RWA and stock tokenization, leading crypto exchanges are increasingly "bringing traditional financial assets into the platform": gold, forex, stock indices, and commodities have started to appear in crypto account systems. Against the dual background of crypto cycles switching and macroeconomic trends emerging, TradFi products have become key weapons for exchanges competing for trading volume, user retention, and capital accumulation. This is also an inevitable choice for exchanges to upgrade from a single crypto asset trading venue to a multi-asset trading terminal.

This article will systematically analyze the background of the rise of TradFi, the definition and mechanism of TradFi, and the differences between TradFi and perpetual contracts, focusing specifically on two mainstream product paths: one is the MT5/CFD brokerage path represented by Bybit, Bitget, and Gate, and the other is the TradFi perpetual path represented by Binance. Furthermore, we will discuss the opportunities TradFi faces, along with fragmented regulations, market closure pricing risks, and challenges of risk control models, as well as look forward to the future evolution trend of exchanges towards "financial supermarketization": the ultimate fate of TradFi may not simply be the launch of more assets, but the accumulation of stablecoins, cross-market circulation, and the reconstruction of a multi-asset risk control system.

1. The Background of the Rise of TradFi

The underlying logic of this round of TradFi expansion is not complex: macro volatility has become a more stable trading theme, with the strength of US stocks and significant movements in precious metals providing a continuous "tradable narrative." The switch in crypto cycles has amplified users' demand for "new trading materials"; meanwhile, stablecoin margins, unified accounts, and mature brokerage trading systems have created the infrastructure conditions for traditional asset trading to be "crypto-distributed." TradFi is regarded as a new growth category: it not only meets macro trading demands but also serves the platform's objectives of capital retention and accumulation.

1) Macroeconomic themes and market catalysts: Rising enthusiasm for traditional asset trading

The trading enthusiasm in the crypto market highly depends on cycles and narratives, with the "validity" period of new coins and new concepts getting shorter; however, traditional asset trends are often driven by macro variables, presenting more sustainable trading rationales: interest rate expectations, inflation trajectories, geopolitical risks, and shifts in risk preference continuously create trends and event windows for gold, forex, and stock indices. When US stocks remain strong and the volatility of precious metals increases, exchanges introducing TradFi essentially turn "overall market macro volatility" into a tradable traffic entry point within the platform.

2) Upgrade in user demand: Hedging and multi-asset allocation become necessities

As traders become more mature, more people realize that being exposed only to crypto assets equates to tying their investment portfolio to a single risk factor—once risk preferences reverse, correlations across all positions can quickly rise. The attractiveness of TradFi lies in its provision of a basket of assets that are less correlated and can be used for hedging: gold can capture risk-averse sentiment, forex reflects the US dollar cycle, stock indices represent pricing for risk assets, and commodities correspond to inflation and supply-demand shocks. Users hope to complete these allocations on the same platform rather than opening multiple accounts, switching margins, and arbitraging across systems. The launch of TradFi by exchanges is not just "providing users with another toy," but transforming "portfolio management" into an in-house capability, thereby enhancing user retention and the duration of capital stays.

3) Maturity of infrastructure makes TradFi "replicable and scalable"

Stablecoins have become de facto cross-market margins, solving the problem of "inconsistent capital forms" in traditional asset trading; unified accounts draw TradFi closer from "independent systems" to "the same capital pool," improving capital efficiency. Moreover, TradFi can expand rapidly across multiple exchanges, crucially relying on its replicable engineering path:

The MT5/CFD route can directly reuse existing brokerage systems, transferring a complete set of rules including spreads, commissions, overnight fees, and margin ratios into the product layer, allowing for quick implementation;
The perpetual route attempts to use familiar contract frameworks to carry traditional assets, combined with stablecoin margins and unified accounts to reduce user migration costs.

4) Competitive pressure from exchanges: Competing for "overall market volatility" and capital retention

As it becomes increasingly difficult for crypto asset spot listings and single contract types to sustain growth, exchanges must seek new sources of trading volume. The core value of TradFi lies in two aspects:

It brings volatility outside of crypto into the platform, allowing exchanges to no longer only rely on "crypto market trends," but to have tradable themes even during cooling periods of crypto;
It enhances capital accumulation efficiency—users keep USDT within the platform for TradFi, further forming a trading cycle between TradFi and crypto contracts/spot.

From a business logic perspective, TradFi is not merely "the icing on the cake," but a redesign of growth structure: allowing exchanges to transition from single asset trading venues to cross-asset multi-category platforms, competing for a broader market share.

2. Definition and Scope of TradFi

TradFi (Traditional Finance) does not enable users to "buy stocks or gold itself," but rather the exchanges package the price fluctuations of traditional assets into tradable derivatives, allowing users to participate in trading macro assets such as gold, forex, stock indices, and commodities under a unified account and stablecoin margin system. The core of this product form is "trading price differences," rather than holding the assets themselves or obtaining corresponding rights.

It is important to clarify that "TradFi" in the context of crypto exchanges is not equivalent to RWA, nor is it equivalent to stock tokenization. While all three point to "traditional assets entering the crypto system," the essential differences are very clear: exchange TradFi is more about a derivative trading entry for traditional asset prices; RWA emphasizes on-chain confirmation and combinability of real assets and cash flows; while stock tokens involve securities rights mapping, custodial structures, and regulatory permissions, falling under a more sensitive compliance domain.

In terms of specific product forms, exchange TradFi generally covers precious metals, forex, stock indices, commodities, and some stock derivatives. These assets are not on-chain assets but enter the trading system in the form of indexed pricing sources, and what users trade are price fluctuations, not physical delivery.

1. Mainstream Product Routes of TradFi

Currently, the mainstream product routes of exchange TradFi are mainly divided into two paths:

(1) CFD/MT5 Route

CFD typically centers around "difference settlement": users do not hold the underlying asset itself but long/short on price increases/decreases. Leverage is fixed and cannot be manually adjusted, and the cost structure usually consists of spreads, commissions, and overnight interest. It provides forex, US stock CFDs, indices, and commodities trading services 24/5. Bybit, Bitget, and Gate belong to this category; this route essentially "turns exchanges into brokerage entry points": users open a TradFi (MT5) account and trade traditional asset CFDs within the MT5 system.

(2) TradFi Perpetual Contract Route is more "crypto-oriented": it turns traditional assets like precious metals and stocks into contract experiences similar to crypto perpetual contracts, settled in USDT, with no expiration dates, emphasizing a more unified trading experience within the exchange. Binance is closer to this type, defining its TradFi perpetual contracts as contracts that are USDT settled, track traditional asset prices, and have similar margin and settlement methods as existing crypto perpetual contracts. Its key selling points are 24×7 continuous trading, using stablecoins like USDT for margin, and adjustable leverage.

2. TradFi (MT5/CFD) Contract Mechanism

Trading targets: CFDs essentially bet on the price fluctuations of the underlying asset, without involving delivery. You earn profits or losses based on price movements, rather than holding the rights to the stocks or the golden assets.

Cost structure: Under the MT5 system, TradFi trading costs are broken down into: trading costs (spreads, per lot commissions) + overnight swap

Trading sessions: Not 24/7, TradFi contracts generally have fixed trading sessions and market closures, which introduce characteristics such as gap risks and overnight fees: you face the "market closure + gap" rhythm of traditional markets. Margin call logic: Unlike crypto perpetual contracts, TradFi (MT5/CFD) generally triggers margin calls based on margin levels. Common stop-loss thresholds are 50%, and once triggered, it may proceed to liquidate positions in a "max loss priority" manner.

3. TradFi (MT5/CFD) vs. Crypto Perpetual Contracts

Dimension	TradFi (CFD/MT5 Route)	Crypto Perpetual Contracts
What is traded	Trading the price difference of traditional assets (no ownership of the underlying, no delivery)	Trading the prices of crypto assets (perpetual derivatives, usually maintain reasonable pricing through a marked price mechanism)
Target asset categories	Gold/silver, forex, stock indices, commodities, and some US stocks	Crypto assets like BTC/ETH/SOL and various altcoins
Trading hours	Primarily market hours (with market closures)	24/7
Pricing/execution style	Closer to "broker/MT5" system (spreads, per lot commissions, overnight fees)	Closer to “exchange order book/matching” system (maker/taker, funding rates)
Main cost structure	Spreads + per lot commissions + overnight fees	Maker/taker fees + funding rates
Leverage characteristics	Most products have preset/fixed leverage (not freely adjustable)	Most exchanges allow manual leverage adjustment within limits
High-risk points	Market closure gaps + accumulation of overnight fees, as well as margin ratio triggering margin calls	In extreme market conditions, marked price/maintenance margin triggering margin call, funding rates significantly affecting position costs
Margin call trigger mechanism	Margin level (Equity/Used Margin)	Maintenance margin rate + marked price + liquidation price

3. Comparative Analysis of Mainstream Exchange TradFi Products

As TradFi becomes a new battlefield for exchange competition, leading platforms have shown clear differentiation in product routes and user experience. Bybit, Bitget, Gate, and others choose the MT5/CFD brokerage path, emphasizing rapid replication and strategic ecosystems, while Binance pushes for the perpetualization of TradFi, stressing a unified entry and a 24/7 trading experience. TradFi is becoming an important variable in the differentiation competition among exchanges.

1. MT5 + CFD Route

Bybit: Leader in exchange TradFi CFDs, offering the richest variety of underlying assets

Bybit will upgrade "Gold & FX" to "Bybit TradFi" on June 3, 2025, integrating it into the Bybit App. By mid-October 2025, it will launch on web/desktop and continuously expand stock CFDs, indices, forex, and commodity trading. It emphasizes that users can trade gold, forex, commodities, indices, and stock CFDs based on USDT through a single app and wallet, without needing currency exchange or app switching, enabling diversified investments between the cryptocurrency and traditional markets 24/5. It also extends growth initiatives closer to crypto users, such as TradFi Copy Trading, allowing novices to enter the traditional financial trading market by "copying trades."

Bitget: Clear categorization, emphasizing user experience

Bitget launched TradFi in December 2025, clearly defining TradFi as participating in traditional asset CFD trading through TradFi accounts using USDT, covering forex, precious metals, commodities, and stock indices. It supports up to 500 times leverage, but leverage is preset by category and users cannot manually modify it. TradFi accounts are denominated in USDT, and if negative balance protection is enabled, the platform automatically resets negative balances to zero, creating a more user-friendly experience. Bitget disclosed that in January, about 11.75% of its total trading volume came from non-crypto products, with daily TradFi trading volume reaching $4 billion.

Gate: Multiple leverage options + perpetual contracts, offering users more choices

Gate TradFi also follows the traditional asset CFD model, with the underlying trading system being MT5. After funds are transferred from USDT, they are displayed as USDx, which is the platform's internal accounting unit anchored 1:1 to USDT. Its特徴 is "multiple leveraged products for precious metals": apart from the mainstream category leverage framework that can go up to 500x, it breaks down gold into various contracts like 20x/100x/200x, allowing the same underlying asset to match different risk preferences. Gate announced that since the launch of TradFi, the cumulative trading volume has exceeded $20 billion, with peak daily trading volume exceeding $5 billion.

2. Perpetual Contract Route

Binance: Making TradFi into "exchange perpetual," smoother 24/7 trading. On January 8, 2026, Binance officially announced the launch of TradFi perpetual contracts, supporting leverage up to 100x, and emphasizes its pricing and risk model under 24/7 trading. Binance’s differentiation lies in "turning TradFi into perpetual contracts," emphasizing USDT settlement + unified contract entry + 24/7 continuous trading, using traditional assets to create familiar trading forms for crypto users. During the closures of the underlying markets, it designed a special index/marked price and deviation constraints to support continuous 24/7 trading, employing an EWMA method to smooth marked prices and limit deviations from indices during non-trading times to reduce gap and abnormal margin call risks.

Dimension

Binance

Bybit

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