CeFi DeFi Bridge

Definition ∞ A CeFi DeFi Bridge represents a mechanism or platform that connects centralized finance (CeFi) with decentralized finance (DeFi). This bridge allows assets and liquidity to flow between traditional, regulated crypto services and permissionless, blockchain-based protocols. Its purpose is to combine the accessibility of CeFi with the innovation and transparency of DeFi. Such bridges facilitate broader participation in digital asset markets.
Context ∞ The development of CeFi DeFi bridges is a significant area of focus, aiming to attract more institutional capital into the decentralized ecosystem. News reports often discuss new partnerships or technological advancements that enhance interoperability and reduce friction between these two distinct financial paradigms. Security concerns and regulatory clarity for these bridges are ongoing topics of discussion.