For much of crypto’s early history, digital assets and traditional finance barely acknowledged each other. If you were around in the earlier Bitcoin years, you’ll remember the mood. Banks treated anything crypto-adjacent as radioactive, accounts were closed without warning, and even basic infrastructure like payment rails felt fragile. That divide shaped the industry for years. But today, the separation between crypto markets and traditional markets is getting harder to defend. What used to be two parallel systems is increasingly becoming one connected trading environment, with the same participants rotating between assets, the same risk frameworks applied across markets, and derivatives acting as the bridge. The numbers underline how quickly this shift has accelerated. CoinGlass estimates that cryptocurrency derivatives trading volume reached $85.7 trillion in 2025, averaging roughly $264.5 billion per day. CoinGlass estimates that cryptocurrency derivatives trading volume reached $85.7 trillion in 2025, averaging roughly $264.5 billion per day. CoinGlass estimates that cryptocurrency derivatives trading volume reached $85.7 trillion in 2025, averaging roughly $264.5 billion per day. That matters because derivatives are not just “more trading.” They are infrastructure. They normalize leverage, margin mechanics, hedging, and cross-market positioning. In other words, they train traders to think in macro terms. Why crypto platforms are moving into “TradFi” instruments Why crypto platforms are moving into “TradFi” instruments I recently spoke with Vivien Lin, Chief Product Officer at BingX, a crypto exchange and Web3 AI company, about what they’re seeing in trader behavior. One point stood out: crypto-native traders increasingly want exposure to traditional markets without needing to rebuild their entire workflow, identity verification process, and capital allocation across multiple platforms. BingX has grown to over 40 million users, and their team described a pattern they’ve been watching for years: traders moving between exchanges and brokers depending on what they want to express. Crypto for volatility, forex for macro, commodities as a hedge. BingX has grown to over 40 million users BingX has grown to over 40 million users “What we’re watching is a behavior shift,”  Lin says. “Many traders do not think of themselves as ‘crypto traders’ anymore. They’re traders, period. They want to express macro views across Bitcoin, FX, commodities, and indices without rebuilding their entire setup every time the thesis changes.” “What we’re watching is a behavior shift,”  Lin says. “Many traders do not think of themselves as ‘crypto traders’ anymore. They’re traders, period. They want to express macro views across Bitcoin, FX, commodities, and indices without rebuilding their entire setup every time the thesis changes.” “What we’re watching is a behavior shift,”  Lin says. “Many traders do not think of themselves as ‘crypto traders’ anymore. They’re traders, period. They want to express macro views across Bitcoin, FX, commodities, and indices without rebuilding their entire setup every time the thesis changes.” That trading behavior is pushing a broader industry shift toward multi-asset access. BingX’s offering, branded as “BingX TradFi,” provides exposure to traditional markets such as major FX pairs, commodities, and indices alongside crypto markets. According to figures published on BingX’s website, trading in its TradFi products has gained traction, with 24-hour volume exceeding $1 billion. BingX TradFi Gold accounted for more than $500 million of that total. According to figures published on BingX’s website, According to figures published on BingX’s website, Importantly, the strategic logic is not that crypto platforms suddenly become traditional brokerages. It is that they are responding to a hybrid trader profile that already exists. Derivatives are the common language Derivatives are the common language The reason this convergence is happening through derivatives is practical. Spot markets require custody, settlement, and regulatory structures that vary widely across jurisdictions. Derivatives, on the other hand, can be cash-settled, margined, and engineered in a way that translates more cleanly across asset classes. So the same trader who is used to managing margin requirements and liquidation risk in crypto perps can apply that framework to oil, gold, or an equity index. The asset changes, but the structure feels familiar. This is also why crypto derivatives are often estimated to make up a large share of overall crypto market activity. One industry estimate puts derivatives at roughly three quarters of total crypto trading volume, though exact percentages vary by methodology. three quarters of total crypto trading volume, three quarters of total crypto trading volume, The hybrid trader is no longer niche The hybrid trader is no longer niche The “hybrid trader” used to be rare. Today, they are becoming a major market participant. These traders: hedge crypto volatility with gold exposure
watch U.S. dollar strength and liquidity conditions
trade correlations between risk assets
react to macro catalysts that hit both equities and crypto simultaneously hedge crypto volatility with gold exposure watch U.S. dollar strength and liquidity conditions trade correlations between risk assets react to macro catalysts that hit both equities and crypto simultaneously Crypto’s always-on market structure also changes trader expectations. A generation raised on 24/7 markets tends to demand speed, responsiveness, and continuous execution. That culture bleeds into how they approach every asset class. “The surprising part wasn't the demand,” Lin added. “It was how quickly crypto-native traders translated their skills to traditional markets. The asset class might be different, but risk management, leverage, liquidation, and technical structure are the same language.” “The surprising part wasn't the demand,” Lin added. “It was how quickly crypto-native traders translated their skills to traditional markets. The asset class might be different, but risk management, leverage, liquidation, and technical structure are the same language.” Institutions are validating the convergence Institutions are validating the convergence This is not only a retail or platform story. Institutions have helped accelerate the merge. A watershed moment came when the U.S. SEC approved spot Bitcoin ETFs on January 10, 2024. That decision effectively pulled Bitcoin exposure into the most mainstream financial wrapper in the world: the ETF. U.S. SEC approved spot Bitcoin ETFs on January 10, 2024. U.S. SEC approved spot Bitcoin ETFs on January 10, 2024. Tokenization is also building a second bridge. According to a16z crypto, tokenized real-world assets sit around $30 billion, up nearly 4x over the prior two years. According to a16z crypto, tokenized real-world assets sit around $30 billion, up nearly 4x over the prior two years. According to a16z crypto, tokenized real-world assets sit around $30 billion, up nearly 4x over the prior two years. That matters because it reframes crypto infrastructure as more than “crypto.” It becomes rails for market structure. Regulation is no longer a footnote Regulation is no longer a footnote Regulation has moved from being a constant existential threat to a force shaping the industry into something investable and institutional-grade. In the U.S., the GENIUS Act was signed into law on July 18, 2025, creating a clearer framework around payment stablecoins. the GENIUS Act was signed into law on July 18, 2025 the GENIUS Act was signed into law on July 18, 2025 And in accounting, the SEC’s move to rescind SAB 121 (via SAB 122) was a meaningful signal for custody, balance sheet treatment, and institutional participation. SEC’s move to rescind SAB 121 (via SAB 122) SEC’s move to rescind SAB 121 (via SAB 122) These policy shifts do not just change compliance. They change incentives. And incentives are what bring serious capital into a category. What comes next for Digital Traders What comes next for Digital Traders The industry is moving toward a world where traders do not think in “crypto vs traditional.” They think in exposures, volatility, correlation, hedges, and liquidity. From that lens, multi-asset trading is not a gimmick. It is the natural result of market maturity. After spending years in the crypto trenches, watching banks shut doors while builders kept shipping anyway, it is hard not to notice how different this era feels. The lines are blurring. Not because crypto became less crypto, but because the rest of finance is increasingly adopting the same tools, the same rails, and in many cases the same worldview. For this article, I spoke with a representative from BingX. I am not employed by or affiliated with BingX. For this article, I spoke with a representative from BingX. I am not employed by or affiliated with BingX.

This writer has a vested interest be it monetary, business, or otherwise, with 1 or more of the products or companies mentioned within.

The Convergence of Crypto & Traditional Markets: Digital Traders Are Reshaping Asset Diversification

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