CeFi Integration

Definition ∞ CeFi integration refers to the operational connection between traditional centralized finance platforms and decentralized cryptocurrency protocols. This process permits the movement of assets and data between conventional financial institutions and blockchain-based applications. It enables users to access cryptocurrency services through familiar interfaces while potentially leveraging blockchain’s advantages. Such connections often aim to bridge liquidity and user bases between distinct financial realms.
Context ∞ The current state of CeFi integration is marked by ongoing regulatory debates concerning consumer protection and anti-money laundering compliance across these linked systems. A key development to observe involves the creation of standardized interoperability protocols that ensure secure and transparent asset transfers. This intersection remains a critical area for both innovation and regulatory oversight within the broader digital asset space.