TradeFi is an abbreviation for Traditional Finance. It is used to refer to the traditional financial system that includes banks, stock exchanges, investment funds, bonds, insurance, and other regulated financial instruments. TradeFi contrasts with DeFi (Decentralized Finance), which uses blockchain technology to offer financial services without traditional intermediaries.
In the context of investments, TradeFi encompasses conventional markets such as Wall Street, investments in stocks, bonds, and derivatives operated through regulated entities such as the SEC in the U.S. or the CNMV in Spain.
The traditional finance sector is undergoing significant transformations driven by technological innovation and changes in consumer preferences. Below are some of the most notable trends and developments:
1. Digitization and Electronic Payments
2. Competition between Neobanks and Traditional Banking
3. Integration of Blockchain into Financial Infrastructure
4. Convergence between Decentralized Finance (DeFi) and Traditional Finance
5. Focus on Sustainability
#TradeFiRevolution