Since its launch, TradeFi, the traditional financial services arm of global cryptocurrency exchange Bitget, has seen rapid growth in trading volume. Bitget announced on January 8th that the daily trading volume of its TradeFi product, officially launched on January 5th, has surpassed $20 billion.
Analysts believe the surge in trading volume stems from increased short-term demand for traditional assets such as gold, foreign exchange, and stock indices amid heightened volatility in global financial markets recently. In the past 72 hours, the most actively traded instruments were, in order: gold, the Dow Jones Industrial Average, the Nasdaq 100 Index, silver, and the euro/dollar exchange rate.
Bitget TradFi aims to allow users to trade traditional financial products such as forex, commodities, and indices using USDT through the same interface as their cryptocurrency accounts. Its key feature is that cryptocurrency traders can access global financial markets without needing a separate securities account or a broker.
Gold, in particular, is the most traded asset on TradeFi since its inception, according to statistics. Due to its ample liquidity and relatively high short-term price volatility, it is considered both a hedging tool in risk-averse situations and a short-term trading asset.
Bitget senior analyst Ryan Lee explained, "Recent geopolitical and macroeconomic headlines have fueled risk aversion, with funds flowing into gold and silver." He added, "Oil prices are remaining stable around $60 per barrel, with limited short-term inflationary pressure."
He added, "Based on on-chain data, factors such as reduced exchange holdings, stabilizing ETF fund flows, and maintained stablecoin liquidity suggest the possibility of a medium- to long-term price base forming, rather than a sharp sell-off."
Bitget designed TradeFi as an event-driven, short-term trading environment to respond quickly to macroeconomic indicator releases or increased market volatility. The company explained that this milestone of surpassing $20 billion in daily trading volume represents an initial success of its strategy to create a 'universal exchange' connecting cryptocurrencies with traditional financial assets.
Bitget CEO Gracy Chen stated, "A structural transformation in asset management is underway," and "The market demand for an environment that allows access to global assets through a single account, moving away from the high fees and complex processes of traditional financial platforms." She further emphasized, "Our competitive advantage lies in offering tokenized TradFi assets such as gold, forex, and stocks at the lowest global cost."
On the other hand, Bitget plans to gradually expand its UEX model, integrating various markets, including on-chain assets such as TradFi, tokenized stocks, indices, forex, and commodities, into a unified trading environment.
