Centralized Finance (CeFi)

Centralized Finance (CeFi) serves as a bridge between traditional finance (TradFi) and modern financial applications such as blockchain and financial technology (FinTech). CeFi enterprises operate with a centralized governing body that controls users’ funds. While there are varying interpretations of CeFi, it typically includes centralized exchanges (CEXs), cryptocurrency asset custodians, and various FinTech applications like payment service providers. CeFi service providers are known for their user-friendly interfaces, strong regulation, and low fees. However, their centralized nature may introduce a single point of failure.