Centralized Decentralized Finance

Definition ∞ Centralized Decentralized Finance, or CeDeFi, refers to financial services that combine aspects of traditional centralized finance with decentralized blockchain technology. This hybrid model seeks to blend the efficiency, regulatory compliance, and user experience of centralized platforms with the transparency, immutability, and liquidity benefits of decentralized finance protocols. CeDeFi platforms often act as intermediaries, providing access to decentralized applications while retaining some control over user identity, funds, or governance. It represents an attempt to bridge the gap between conventional financial systems and the burgeoning decentralized economy.
Context ∞ CeDeFi is a growing area of discussion in crypto news, as institutions and traditional investors seek compliant entry points into the digital asset space. Debates often focus on the degree of decentralization truly present in these offerings and whether they genuinely uphold the core principles of DeFi. The future expansion of CeDeFi will depend on balancing regulatory demands with the user desire for decentralized control and transparency.