Why Are Major CEXs Like Binance, Bybit, and Coinbase Rushing Into DeFi?

The Quiet Revolution

I’ve spent the last quarter mapping how Binance, Bybit, and Coinbase are quietly dismantling the wall between centralized exchanges and decentralized protocols. This isn’t a trend—it’s a structural realignment. Each player is solving the same problem differently: how to keep users from fleeing to Uniswap or PancakeSwap while still capturing early token liquidity.

Binance Alpha: Removing Friction for Retail

Binance didn’t build a new chain—they simplified the existing one. Alpha embeds DEX trading directly into their app interface. No wallet setup. No gas fee anxiety. No mnemonic recall. For the Web3 newcomer, it feels like using PayPal—except it’s on-chain. This isn’t decentralization for its own sake; it’s accessibility as a product strategy.

Bybit’s ByReal: Liquidity as a Service

Bybit took another path: they built an independent Solana-based DEX—but one that mimics CEX depth. Their CLMM model concentrates liquidity around active price tiers, slashing slippage like a market maker would. Meanwhile, assets remain self-custodied via Phantom wallets—and $bbSOL质押 delivers yield without surrendering control.

Coinbase: The Two-Tier Hedge

Coinbase doesn’t pretend to be fully decentralized—or fully licensed. They offer seamless access to retail users… but behind closed doors, Verified Pools demand KYC for institutions. Regulatory compliance isn’t a barrier here—it’s the moat.

CeDeFi Is Not an Endpoint—It’s the New Middle Ground

The boundary is blurring because users don’t care if it’s ‘centralized’ or ‘decentralized.’ They care if it works smoothly—and earns them yield without friction. Exchange tokens—BNB, $BYBIT—are evolving from fee discounts into governance keys that unlock launchpads and early access.

This isn’t about surviving DeFi—it’s about absorbing it.