The Vienna-based fintech unicorn Bitpanda is harkening back to the ways of traditional finance (TradFi) through new offerings on its exchange platform.
By adding commodities to its list of available investment options, Bitpanda aims to provide its users to benefit from short-term price fluctuations in more traditional instruments, such as oil, natural gas and wheat.
Bitpanda CEO Eric Demuth told Cointelegraph that due to investor demand, the line between TradFi and decentralized finance (DeFi) is becoming more blurred every year.
“People want to be able to trade multiple asset classes simply, safely and conveniently, and TradFi is catching up to that idea.”
In both financial realms, there are lessons to be learned about what benefits consumers most. TradFi is taking notes from DeFi in terms of accessibility, while DeFi has lessons to learn from traditional financial mechanisms as far as risk mitigation.
“TradFi has focused on expanding its accessibility, and that is driving a convergence. There is still some way to go before [it] can claim to have the same level of usability and accessibility offered by fintechs.”
With estimates of more than 300 million crypto users as of this year, traditional and DeFi traders are most likely on the road to some middle ground.
As major institutions around the globe caught on to the crypto investment, opening up trading opportunities to assets like commodities on a digital asset exchange could also serve as a gateway to traditional instruments for crypto investors.
“Crypto investors tend to be very involved in tradable markets. They also appreciate the simplicity offered by platforms that allow them to make quick and easy investments into multiple asset classes.”
Demuth says if platforms can offer the accessibility and simplicity of crypto trading, but with listings which include assets from TradFi investment possibilities widen.
Though he also stressed that in such instances an emphasis must be placed on educating about the pros and cons of each asset within the parameters of their place within the financial world.