From the Edge to the Mainstream: Why is TradFi Being Reshaped by Blockchain?

Over the past two years, the way the global financial system communicates has undergone a fundamental shift. Once considered a “parallel world,” cryptocurrencies and traditional finance (TradFi) are no longer just intersecting; they are entering a stage of deep integration and structural reshaping.

If you follow the market, you’ll notice a significant change: the approval of Bitcoin spot ETFs has opened the floodgates for institutional capital. The Singapore Exchange (SGX) and Cboe have launched perpetual crypto futures, and leading crypto exchanges are no longer just “selling coins” but are beginning to offer trading in gold, stock indices, forex, and even US stock tokens.

This is not merely an expansion of categories but a blockchain-driven overhaul of the underlying financial logic. As a key participant in this transformation, Gate, with its forward-looking product suite and compliance strategy, is becoming a vital bridge connecting these two worlds.

Pain Points in Traditional Finance: Why Must It Be Reshaped?

The core bottlenecks of traditional finance (TradFi) are increasingly evident. First is settlement efficiency. In traditional stock markets, T+1 or even longer settlement cycles lead to high capital costs and counterparty risk accumulation. Second is access barriers. A single share of Tesla or Nvidia often costs hundreds of dollars and can only be traded during specific hours, limiting global capital liquidity.

More importantly, there is the “trust cost.” The collapse of FTX left institutional investors with deep “post-traumatic stress disorder” (PTSD)—in traditional crypto exchange models, platforms integrate multiple roles such as market makers, brokers, custodians, and clearinghouses. These structural conflicts of interest are strictly prohibited under traditional financial regulations.

Blockchain technology is gradually breaking down these pain points. It inherently offers 24/7 operation, instant final settlement, and fragmented ownership. Today, users can use Bitcoin, Ethereum, or USDT as “universal collateral” to seamlessly switch between crypto assets and traditional stock indices within the same ecosystem.

Gate’s Product Suite: From “Crypto Exchange” to “Unified Financial Account”

Facing this historic convergence, Gate has not merely adopted a wait-and-see stance but has responded with tangible product iterations. As of February 2026, Gate’s global user base has exceeded 49 million, with total trading volume in 2025 surpassing $12 trillion. This is supported by its integrated multi-asset trading system.

Breaking Time and Barriers: Stock Tokenization

Gate’s tokenized stock ecosystem is anchored by xStocks and Ondo Zone. In the xStocks section, users can trade 24/7 tokenized versions of US blue-chip stocks like Tesla (TSLAx) and Nvidia (NVDAx) using USDT. These assets are fully backed 1:1 by real stocks, enabling “fragmented ownership” and significantly lowering the entry barrier for retail investors to high-priced stocks.

Since launch, Gate’s tokenized stock trading volume has exceeded $20 billion, demonstrating strong market demand for “crypto-distributed TradFi.”

MT5/CFD Route: Covering Macro Assets

Gate has chosen the MT5/CFD platform to support complex traditional financial derivatives. Through MT5, Gate offers robust contracts for difference (CFD) services covering forex, precious metals (gold/silver), stock indices, and commodities.

This differs fundamentally from perpetual crypto contracts: TradFi products follow traditional market hours (with trading breaks), and their fee structures include spreads, per-lot commissions, and overnight fees (swap). They are better suited for macro hedging and asset allocation. Recently, Gate Alpha introduced metal trading features, allowing users to buy, sell, and hold tokenized gold and silver on-chain with a single click—avoiding physical storage hassles while maintaining the hedging properties of precious metals.

Revolutionizing Capital Efficiency: Unified Accounts and Wealth Management

In Gate’s ecosystem, assets are not just trading instruments but also capital that can generate yields. The unified account system supports multi-asset collateralization, allowing users to deposit XAUT (tokenized gold) into “YubiBao,” with an estimated annual yield of up to 1.97%. This “trade and earn” model captures multiple values from a single asset, transforming passive storage into active wealth growth.

The Foundation of Trust: Compliance and Transparency

In this fusion of TradFi and crypto, compliance is the key to traffic. Institutional capital’s demand for security and regulatory adherence drives infrastructure standardization.

Gate is well aware of this. By 2026, multiple entities under the Gate Group have obtained or completed regulatory registration in 79 jurisdictions, including Malta, The Bahamas, Japan, Australia, and Dubai. Notably, Gate has received a full operational license from the Dubai Virtual Assets Regulatory Authority (VARA); in Europe, Gate Technology Ltd has obtained a MiCA license from the Malta Financial Services Authority.

Regarding asset security, Gate is the world’s first mainstream exchange committed to 100% reserves, ranking fourth globally in total reserves. By implementing zero-knowledge proofs, Merkle tree structures, and user balance snapshots, Gate ensures transparency at every technical detail. This relentless pursuit of user fund safety has become a crucial trust anchor as TradFi institutions enter in large numbers.

The Future Is Here: Intelligent Web3 and Super Accounts

Looking ahead, Gate founder and CEO Dr. Han proposed the development direction of “Intelligent Web3” at Consensus HK: future Web3 will be driven by intent, with AI agents understanding user needs and automatically finding optimal solutions across multiple chains and protocols.

This concept also applies to the integration with TradFi. GateAI has been deeply integrated into the Gate App, assisting users with information filtering, strategy understanding, and operational decisions. When a novice wants to hedge risk with Bitcoin and gold simultaneously, AI will automatically calculate the best ratio, execute cross-market trades, and plan the most efficient wealth growth path.

Conclusion

From the logo on Inter Milan jerseys to the racing tracks of F1 Red Bull Racing, Gate’s brand has extended globally. But more important than brand exposure is its evolution as a foundational infrastructure provider.

While traditional finance is still debating tokenization frameworks, Gate has already built an active market supporting hundreds of assets with trillions of dollars in total trading volume. While the industry argues over regulatory paths, Gate has completed compliance node deployments across major global financial jurisdictions.

The ultimate goal of reshaping TradFi with blockchain is not merely asset tokenization but creating a single account or wallet that can access the entire financial world. In this trillion-dollar historic window, Gate is leading this paradigm shift with its deep product offerings, compliance foundation, and technological innovation.