#postontradfi TradFi is short for “traditional finance.” It refers to the conventional financial system—institutions and structures that existed before the rise of crypto and decentralized finance (DeFi).
That includes things like:
* Banks (retail and investment)
* Stock exchanges
* Asset managers and hedge funds
* Central banks
* Insurance companies
In contrast to DeFi, TradFi is typically:
* Centralized (controlled by institutions)
* Regulated by governments
* Intermediary-based (you need banks, brokers, etc. to transact)
People often use “TradFi” when comparing it to crypto/DeFi, especially in discussions about:
* Regulation vs decentralization
* Trust in institutions vs trustless systems
* Speed and cost of transactions
If you want, I can break down how TradFi and