Over the past year, centralized exchanges have begun a quiet but important shift. Instead of staying within closed platforms, leading CEXs are increasingly exploring on-chain innovation, combining the efficiency of centralized systems with the transparency of decentralized finance.

This shift reflects deeper changes in user behavior and market expectations in the post-FTX era. With growing demand for decentralization and tighter global regulations, exchanges face a dual challenge: staying competitive while building trust. In response, a new class of platforms—often dubbed “Next-Gen CEXs”—is emerging. These exchanges are no longer limited to trading services; they are building infrastructure, launching protocols, and supporting entire on-chain ecosystems.

The rise of Next-Gen CEXs marks a broader industry transition. As user expectations evolve, exchanges are being pushed to deliver both performance and trust. As the boundaries between centralized and decentralized platforms are becoming increasingly blurred, market dynamics force CEXs to redefine their roles beyond mere trading venues.

Why CEXs Are Going On-Chain

The push toward on-chain products is not just about innovation. It is also a direct response to the evolving landscape that centralized exchanges (CEXs) must navigate.

Regulatory pressure is increasing globally. In many countries and regions, CEXs are facing stricter KYC/AML requirements and greater…