Vienna-based fintech unicorn Bitpanda is returning to the ways of traditional finance (TradFi) on a new exchange platform.
By adding commodities to its list of investment options, Bitpanda aims to allow users to benefit from short-term price fluctuations in traditional instruments such as oil, natural gas and wheat.
Bitpanda CEO Eric Demus told Cointelegraph that the line between TradFi and decentralized finance (DeFi) is blurring more every year due to investor demand.
“People want to trade multiple asset classes easily, securely and conveniently, and TradFi is embracing that idea.”
There are lessons to be learned in both areas of finance that benefit consumers more. TradFi is taking notes from DeFi in terms of accessibility, and DeFi has lessons to learn from traditional financial methods when it comes to risk mitigation.
“TradFi is focused on expanding its reach, and this is driving consolidation. It still has a way to go.” [it] It can claim to have the same level of usability and accessibility offered by Fintex.
With an estimate of over 300 million crypto users this year, traditional and DeFi traders are most likely on their way to some middle ground.
Related: How blockchain technology is changing how people invest.
As major institutions around the world get caught up in the crypto investment, it can open up trading opportunities on digital asset exchanges like commodities, as well as serve as an introduction to traditional tools for crypto investors.
“Crypto investors are heavily involved in the trading markets. They appreciate the simplicity of platforms that allow them to invest quickly and easily into multiple asset classes.
Demuz said that if platforms can offer the accessibility and ease of trading crypto, but listings that include assets from TradFi’s investment will expand.
However, in such cases, he stressed that emphasis should be placed on teaching the pros and cons of each asset and its place in the financial world.