Bridging TradFi and Crypto

Once, the idea of merging traditional finance (TradFi) and crypto seemed fanciful and naive. Crypto was born as a rebellion against a financial system that suffered from excessive money-printing and outdated systems.

However, with the rise of mobile-first banks like Monzo and Revolut and increasing acceptance of digital assets and DeFi protocols, a new financial world has emerged—characterized by open borders, low-cost transactions, and user-friendliness.

The Rise of Hybrid Financial Solutions

The combination of traditional banking with crypto and DeFi is benefiting consumers by providing regulatory compliance and the familiar interface of traditional banking with blockchain efficiency and transparency.

Hybrid platforms are especially transformative for those historically underserved by banks, particularly in developing regions. Users can now easily onboard and participate in the global economy with just an internet connection, without needing to go through lengthy traditional banking procedures.

For instance, Revolut merges conventional banking with crypto support, enabling users to hold multiple currencies and trade crypto while enjoying extras like travel insurance. Similarly, Crypto.com operates like a crypto-friendly bank account, offering features such as free ATM withdrawals and cashback.

CrossFi’s decentralized banking application facilitates low-cost cross-border payments and allows users to spend crypto directly from their web3 wallet, maintaining total ownership of their funds. It operates on the CrossFi Chain, supporting both EVM and Cosmos networks, and has quickly attracted a multitude of decentralized applications.

Why Not Both?

As decentralized finance (DeFi) has reached a total value locked (TVL) of $127 billion, traditional banks are recognizing the importance of incorporating decentralized services into their offerings to remain competitive against fintechs that blend fiat and crypto.

Transitioning between TradFi and DeFi is becoming increasingly seamless, allowing users to pay, trade, and swap assets while earning yields from a single dashboard, which is particularly advantageous for the underbanked and those in unstable economies.

The emergence of hybrid fintech solutions marks just the beginning. Future functionalities may include investing in tokenized real-world assets (RWAs) directly from mobile apps.

The once distinct worlds of traditional and decentralized finance are converging, reshaping the financial industry into a more accessible space, benefiting everyone.