Which Exchanges Are Expanding Into Web3 Services?

Are you trying to figure out which exchanges are expanding into Web3 services and which decentralized trading apps are most popular in 2025?

Which Exchanges Are Expanding Into Web3 Services?

You’re seeing a clear trend: traditional centralized crypto exchanges are broadening their offerings to include native Web3 services. This expansion is changing how you access wallets, decentralized trading, NFTs, staking, and developer tools from a single platform.

Why exchanges are moving into Web3

You should understand that user demand and competitive pressures are driving the shift toward Web3 services. Exchanges are responding to requests for self-custody, on-chain features, and integrated experiences that combine the convenience of centralized platforms with the composability of decentralized protocols.

The strategic goals behind Web3 expansions

You’ll notice exchanges pursuing multiple strategic goals: increasing user retention, capturing new revenue streams, and positioning themselves as infrastructure providers for crypto-native applications. They also aim to reduce friction for users who want both fiat on-ramps and on-chain activity without juggling multiple apps.

How this affects your experience

As an end user, you benefit from easier onboarding to Web3, better liquidity access, and integrated tools for trading, staking, and NFTs. At the same time, you’ll need to weigh trade-offs around custody, privacy, and regulatory safeguards depending on which service you pick.

Types of Web3 Services Exchanges Are Adding

Exchanges are rolling out a diverse set of Web3 features, and you’ll find each exchange chooses a mix that suits its user base and regulatory environment. Below are the main categories you’ll encounter and what they mean for your day-to-day use.

Wallets and self-custody tools

You can now create on-chain wallets directly through many exchanges, sometimes with options for non-custodial keys or hosted-but-user-controlled wallets. These tools aim to reduce the friction of seed phrases while still providing on-chain access for DeFi and NFTs.

Custody and institutional services

If you’re an institutional investor or want institutional-grade custody, many exchanges have expanded custody offerings that combine multi-signature setups, insured vaults, and regulated custody services. This helps you manage large holdings while meeting compliance needs.

Decentralized exchange (DEX) integrations and aggregators

Exchanges are connecting to DEXs or building their own on-chain trading interfaces so you can route orders to on-chain liquidity without leaving the platform. This often includes DEX aggregation, wrapped token support, and on-chain order books for certain assets.

Layer 2 and scaling solutions

You’ll see exchanges partnering with or launching services on layer 2 networks (Optimism, Arbitrum, zk-rollups) to reduce fees and improve trading speed. Some exchanges also operate their own rollups or use modular blockchains to host apps and marketplaces.

NFT marketplaces and tokenization

Many exchanges now host NFT marketplaces and tokenization platforms, which allow you to mint, trade, and custody collectibles and real-world-asset tokens. These offerings can come with fiat checkout, fractionalization, and curated drops.

Bridges and cross-chain tools

Bridges and cross-chain liquidity tools are being integrated so you can move assets between chains more easily, often with exchange-backed liquidity pools or wrapped assets. You should still check bridge security and slippage before transferring large amounts.

Developer platforms and node services

You might use exchange-provided RPC nodes, APIs, and developer SDKs if you’re building Web3 apps. Exchanges are monetizing infrastructure by offering reliable endpoints, monitoring, and custom tooling for protocols and builders.

Major Centralized Exchanges and Their Web3 Initiatives

Below is a concise look at the largest centralized exchanges that are actively expanding into Web3 services and what you should know about each one. Each entry highlights the primary services and notable moves relevant to you as a user.

Binance

You’ll find that Binance has aggressively positioned itself across many Web3 verticals, including native chain integrations, a non-custodial wallet, and an NFT marketplace. If you use Binance, check whether you’re using custodial or non-custodial features, because your security model and recovery options will differ.

Coinbase

When you use Coinbase for Web3, you get a heavy emphasis on UX and regulatory adherence, thanks to Coinbase Wallet and marketplace integrations. Coinbase tends to prioritize clarity around custody choices and offers clear optics for developers exploring on-chain services.

Kraken

Kraken’s Web3 push centers on staking and custody for institutional users, adding tokenization pilots that you might use for regulated asset exposure. If you’re an institution or prefer conservative offerings, Kraken aims to reduce counterparty risks.

OKX

OKX gives you a mix of on-chain wallets, market integrations, and developer tools geared to high-frequency on-chain activity. Many traders appreciate OKX for its multi-network support and competitive fee structures for on-chain interactions.

Bybit

Bybit has been expanding into Web3 with wallets and DEX connectivity, often focusing on derivatives traders who want on-chain hedging. If you trade derivatives, Bybit’s Web3 tools may help you route between on-chain and off-chain positions.

Crypto.com

Crypto.com targets consumer adoption with mobile-first wallets, NFT drops, and payment integrations that make on-chain activity feel familiar to mainstream users. If you use their app, you’ll notice fiat-NFT flows and easy staking options.

Bitstamp

Bitstamp remains more conservative and focuses on institutional custody and tokenization services that fit compliance-heavy clients. You’ll benefit from a strong regulatory stance if you prioritize institutional safety over aggressive feature rollout.

Gemini

Gemini emphasizes compliance and custody, offering selected Web3 services like wallet options and an NFT marketplace in markets where regulators permit those features. If regulatory clarity matters to you, Gemini is often a safe choice.

Decentralized Trading Apps Most Popular in 2025

In 2025, decentralized apps for trading have matured and diversified, and you’ll typically choose a DEX or on-chain protocol based on liquidity needs, supported chains, and whether you want spot or derivatives exposure. Below are the decentralized trading platforms you’re most likely to encounter and why users still flock to them.

Uniswap

Uniswap continues to be one of the primary venues for swapping ERC-20 tokens and supports persistent deployments on layer 2 networks. You’ll appreciate Uniswap’s focus on liquidity, native composability with DeFi apps, and frequent upgrades that aim to reduce gas and improve capital efficiency.

SushiSwap

You’ll find SushiSwap operating across numerous chains, offering swaps, staking, and various yield-generating strategies. SushiSwap also focuses on improving cross-chain liquidity, which can be useful if you move assets between ecosystems.

PancakeSwap

PancakeSwap is typically the go-to on BNB Chain for low-fee swaps and a steady pipeline of new token launches. If you’re cost-sensitive or exploring smaller-cap tokens, PancakeSwap often gives you better price-per-gas than Ethereum mainnet.

1inch

When you need the best price across many liquidity sources, 1inch is an aggregator that routes your swap to the most advantageous pools. For larger trades where slippage and routing matter, you’ll often get better execution through an aggregator.

Curve

Curve remains dominant for stablecoin swaps and low-slippage trades between pegged assets, which you’ll rely on if you need stable-to-stable conversions. Curve’s efficient fee models and specialized pools help keep slippage minimal for larger stablecoin moves.

dYdX

dYdX has been a popular choice for on-chain perpetuals and leveraged trading, combining an orderbook model with L2 performance to reduce friction. If you trade derivatives, dYdX offers a familiar matching experience while keeping funds on-chain.

GMX

GMX provides on-chain perpetual trading using pooled liquidity and native collateral mechanisms, giving you levered exposure without custodial counterparties. You’ll find GMX useful for leverage traders who prefer on-chain settlement and transparent risk parameters.

Balancer

Balancer gives you programmable liquidity pools and nuanced pool weightings, which you can use for automated portfolio management or to create custom LP strategies. If you want to set unique fee curves or multi-asset pools, Balancer supports advanced liquidity design.

Trader Joe

Trader Joe remains a core AMM on Avalanche and is often the first stop for Avalanche-native token launches and yield farms. You’ll use Trader Joe for fast swaps and to tap into Avalanche’s low-latency execution.

How to Choose Between Exchange Web3 Services and Native dApps

You’ll face a practical decision when choosing between exchange-provided Web3 services and standalone decentralized apps. Each option has trade-offs in custody, fees, UX, and regulatory exposure.

Security and custody trade-offs

If you prefer simplicity, exchange wallets that are custodial simplify recovery but keep you dependent on an intermediary. Non-custodial wallet options give you sole control over keys but require you to manage seed phrases and recovery securely.

Fees and UX

Centralized platforms often provide a smoother UX and fiat on-ramps, while native dApps tend to offer lower protocol fees and better composability between on-chain protocols. Consider whether you value immediate convenience or deeper integration with DeFi tooling.

Privacy and anonymity

Using native dApps and self-custody usually provides more privacy since you avoid KYC on the Web3 side, while exchanges will record personal data tied to your activity. If privacy is a priority, you’ll want to minimize custodial exposure and explore privacy-respecting tools carefully.

Liquidity and execution

Centralized exchanges generally offer deeper order book liquidity for large trades, while DEXs provide on-chain settlement and composability benefits. For large or institutional trades, you might use exchange order books or OTC desks; for composable on-chain strategies, DEXs are more useful.

Regulation and legal exposure

When you use regulated exchanges, you get clear legal protections in many jurisdictions but also more constraints on available tokens and features. If regulatory clarity matters to you, choosing an exchange in a friendly jurisdiction can be a strong advantage.

Practical Steps to Use Exchange Web3 Services Safely

You’ll want clear, practical steps to protect your funds when using new Web3 services. Following these steps helps you minimize risks from smart contract bugs, bridge exploits, or custody misunderstandings.

Before you start: do your research

You should read official documentation, check community feedback, and search for audits related to any wallet, marketplace, or DEX the exchange supports. Confirm whether features are custodial or non-custodial and whether insurance or audits back them.

Use small test transactions

Always send small amounts first to verify addresses, chains, and gas estimations before moving large sums. This little habit prevents many common user errors and bridge mismatches.

Understand custody options

If you use exchange-provided wallets, verify how recovery and private key management work and whether multi-sig or hardware wallet integration is possible. When possible, prefer hardware-backed key storage for long-term holdings.

Validate smart contracts and bridges

Check audit reports and reputable security blogs before you use a bridge or a newly launched contract. If an exchange operates its own bridge or wrapped token, verify the trust model and withdrawal mechanics.

Manage approvals and allowances

When you approve token allowances to DeFi contracts, keep allowances limited or use one-time approvals if supported. Regularly audit and revoke allowances you no longer use to reduce permission-related exposure.

Use hardware wallets and multi-sig for high balances

For substantial holdings, store assets in hardware wallets or multi-signature setups supported by the exchange or third-party providers. You’ll dramatically reduce the risk of single-point-of-failure hacks.

Monitor transaction fees and time windows

Be aware of gas fee patterns and the risk of sandwich attacks on high-fee chains; using L2s and aggregators can sometimes reduce this exposure. Also monitor pending transactions to avoid double spends or front-running.

Trends Shaping Exchanges’ Web3 Expansion by 2025

You’re operating in an evolving landscape, and several major trends are shaping how exchanges expand into Web3. Paying attention to these trends helps you anticipate where liquidity, fees, and tooling are headed.

Layer 2 and zero-knowledge rollups

You’ll see more exchanges supporting zk-rollups and optimistic rollups to reduce cost and latency for traders. These solutions lower on-chain fees and enable more complex on-chain products to scale.

Modular blockchains and rollup-as-a-service

Exchanges are exploring modular architectures and offering rollup services to host marketplaces and DEXs, making it easier for you to access custom, low-fee environments. This trend aims to increase throughput while keeping settlement security robust.

Institutional tokenization and compliant assets

You’ll notice more tokenized real-world assets and regulated digital securities being listed and offered through exchange custody products. These offerings make it possible to get exposure to traditional assets on-chain under a compliant framework.

Cross-chain liquidity aggregation

Cross-chain aggregators and unified liquidity pools help you achieve better execution across ecosystems without manually bridging assets. Expect better UX that hides complexity while you benefit from wider liquidity.

Native on-chain order books and hybrid models

Order book models are becoming more common on-chain through hybrid approaches that combine off-chain matching with on-chain settlement. This trend offers you the best of both worlds: fast execution with on-chain finality.

Improved developer tooling and institutional APIs

Exchanges are improving APIs, node access, and developer SDKs so you can build or automate Web3 processes more reliably. If you’re building trading bots or analytics, these tools will make your life easier.

Risks and Challenges for Exchanges Expanding Into Web3

While the opportunities are significant, you’ll also want to be aware of the key risks and operational challenges that exchanges face when expanding into Web3. These risks translate into things you should watch and mitigate as a user.

Regulatory scrutiny and fragmentation

Stronger regulatory scrutiny in multiple jurisdictions increases compliance costs and can limit which features you can access. You should check local availability and restrictions before relying on exchange features.

Smart contract risk and bridge exploits

Any time you interact with on-chain contracts or bridges, you expose yourself to code-level risk that even audits can’t fully eliminate. Keep exposure limited, use reputable protocols, and diversify across secure custody methods.

Liquidity fragmentation

You might experience fragmented liquidity across multiple chains and exchange-native pools, which can increase slippage for certain trades. Aggregation solutions help, but you’ll occasionally need to route trades or split orders.

Centralization vs. decentralization trade-offs

As exchanges add Web3 services, you’ll balance the convenience of centralized interfaces with the trust-minimization of decentralized apps. Decide according to whether you prefer immediate convenience or full self-custody.

User experience and complexity management

Combining custodial and non-custodial options in one platform can confuse users, and poor UX increases the risk of operational mistakes. You should carefully verify whether a feature is custodial or non-custodial and how recovery works.

How This Shift Affects You as a Trader or User

This change in the market affects you directly: it changes where you trade, how you custody, and which tools you can combine for trading strategies. Being proactive and informed will help you take advantage of better UX without increasing unnecessary risk.

Access to integrated trading stacks

You’ll be able to move from fiat on-ramp to on-chain strategies within one platform, reducing friction for complex operations like yield farming after purchasing tokens. That said, always double-check whether the transfer between layers is internal ledger movement or on-chain settlement.

Broader product choices

You’ll gain access to derivatives, on-chain lending, staking, NFTs, and tokenized assets all tied into an exchange ecosystem. That breadth means you can assemble richer portfolios, but also that you should track counterparty and protocol risk for each product.

Opportunities for arbitrage and specialized strategies

With cross-chain liquidity and hybrid orderbooks, you’ll find arbitrage and advanced trading opportunities that require fast routing and monitoring. Using aggregators and API access from exchanges can be advantageous if you have automated strategies.

Final Recommendations for Using Exchange Web3 Services in 2025

You should approach exchange Web3 services with a balanced mindset: embrace the improved UX and integrated features, but keep security, custody, and regulatory clarity front and center. Use small test amounts, prefer hardware or multi-sig for large holdings, verify audits, and choose chains and protocols that match your risk tolerance.

Quick checklist for safe use

• Verify whether a service is custodial or non-custodial.
• Read official audits and community security reports.
• Start with small transactions to test flows.
• Use hardware wallets and multi-sig for large balances.
• Limit token approvals and revoke unused allowances.
• Monitor regulatory announcements in your jurisdiction.

You’ll find the landscape in 2025 richer and more accessible than ever, with exchanges and decentralized apps offering complementary choices. Staying informed, cautious, and adaptive will let you take advantage of these innovations while protecting your assets and privacy.