Crypto Firms Branch Into Traditional Finance as Industry Boundaries Blur
Cryptocurrency firms and exchanges are increasingly moving into Wall Street territory, launching traditional investment offerings that showcase the growing connection between crypto and traditional finance (TradFi).
"There's a growing synergy between traditional financial investments and the emerging crypto space," said Gracy Chen, CEO of Bitget, the world's sixth-largest crypto exchange. Chen believes crypto players are exploring traditional finance as they recognize opportunities to bridge the gap between sectors.
According to Chen, the boundaries between financial sectors are fading as investors seek flexibility. "Some players see TradFi as a safety net; others, like Bitget, see it as a launchpad for broader adoption," she noted, adding that "in a volatile market, integration is smarter than isolation."
Her comments follow Kraken's recent launch of access to 11,000 US-listed stocks and exchange-traded funds (ETFs), reported on April 14. This expansion came shortly after the S&P 500 experienced a record-breaking two-day loss exceeding $5 trillion, following US President Donald Trump's announcement of reciprocal import tariffs on April 2.
Coinbase CEO Brian Armstrong expressed a similar vision during his company's latest earnings call. Armstrong stated that Coinbase aims to help modernize the global financial system by bringing more of the world's GDP onto crypto rails, creating what he describes as "a more efficient, fair, free world."
A Coinbase spokesperson told that the relationship between digital assets and traditional assets is "inherently symbiotic." The spokesperson added that supporting more of traditional finance's integration with crypto is core to their mission of enabling economic freedom for one billion users.
Omri Hanover, general manager at Gems Trade cryptocurrency platform, described the convergence as "inevitable," with blockchain technology providing speed and transparency while traditional finance contributes trust, scale, and compliance. Traditional investment platforms like eToro and Robinhood have also entered the cryptocurrency space with their own offerings.
This financial integration trend coincides with major moves in the cryptocurrency market. Strategy recently acquired 6,556 Bitcoin for $555.8 million at an average price of $84,785 per Bitcoin, bringing their total holdings to 538,200 BTC. The company, transformed from MicroStrategy under Michael Saylor's leadership, has invested $36.5 billion in Bitcoin to date.
