Topic guide · high mechanism risk

TradFi Guides & Concepts

Traditional finance uses regulated institutions and established market infrastructure to intermediate activity.

TradFi vs DeFi: Intermediaries, Access, and Risk

TradFi, or traditional finance, relies on institutions and legal account structures for activities such as deposits, securities custody and market access. DeFi uses blockchain-based protocols and wallets for some analogous activities. Their rights and failure modes must be compared task by task.

Updated 2026-10-28

explainer

What Is TradFi?

TradFi means traditional finance: the institutional systems used for banking, securities, payments and related financial services. The useful definition identifies the account, intermediary, asset rights and governing rules in a particular transaction.

Updated 2026-10-28