TradFi

TradFi is short for "traditional finance" and refers to the established financial system including banks, stock exchanges, insurance companies, and other conventional financial institutions. In crypto discussions, TradFi is often used as a contrast to DeFi (decentralized finance). The term highlights the differences between the centralized, regulated traditional system and the permissionless, blockchain-based alternatives. As the crypto industry matures, the lines between TradFi and DeFi are increasingly blurring.