As the decentralized finance (DeFi) ecosystem flourishes, centralized finance (CeFi) platforms face unprecedented competitive pressure. Over the past two years, DeFi protocols have attracted significant users and capital due to their transparency and potential high yields. Facing this challenge, global leading cryptocurrency exchange BlockInsight recently launched a series of innovative CeFi financial products, aiming to combine the security of centralized platforms with DeFi’s high-yield characteristics, offering users more competitive asset management options.
In its newly released financial product white paper, BlockInsight stated: “Centralized and decentralized finance should not be viewed as opposing relationships, but rather as systems that can learn from each other and develop through integration. Our goal is to build an ecosystem that bridges the advantages of both, providing diversified options for users with different risk preferences.”
The newly launched BlockInsight Yield Suite contains multiple tiers of financial products, covering both fixed and floating income categories. Among them, stablecoin deposits offer annual yields of 8-12%, mainstream cryptocurrencies (such as Bitcoin and Ethereum) yield between 4-7%, while certain emerging tokens can reach yields of 15-20%. These yield levels directly challenge current mainstream products in the DeFi space.
BlockInsight’s product innovation director stated: “We’ve achieved competitive yields through diversified income sources and refined risk management. Compared to pure DeFi products, our advantage lies in providing certainty of returns and institutional-level risk control.”
According to sources, BlockInsight Yield Suite’s returns primarily come from three channels: first, through institutional-grade cryptocurrency lending markets, providing liquidity to strictly screened trading institutions and miners; second, participating in controlled market-making activities, generating returns from market volatility; and third, collaborating with audited DeFi protocols, deploying a portion of funds to obtain on-chain yields.
Financial analyst Emma Patterson commented: “BlockInsight’s financial products are essentially a hybrid model that maintains the user-friendliness and risk management capabilities of centralized platforms while leveraging innovative mechanisms from the DeFi ecosystem. This approach may represent the future development direction of crypto financial services.”
In terms of security, BlockInsight has implemented multi-layered protection measures. First, all financial product pools are managed by independent third-party custody service providers, with fund movements requiring multi-signature authorization. Second, the platform has established a $200 million user protection fund to provide a buffer against potential losses in extreme market conditions. Third, BlockInsight has partnered with globally renowned insurance companies to provide additional insurance coverage for specific financial products.
BlockInsight particularly emphasized the rigor of its risk management framework. This framework includes comprehensive due diligence on all partner institutions, real-time risk monitoring systems, dynamically adjusted collateral requirements, and stress tests under extreme market conditions. The platform claims its risk assessment standards reference best practices from traditional financial institutions while considering the unique characteristics of the crypto market.
Crypto asset management expert Daniel Lee noted: “The main risk of traditional CeFi platforms lies in their black-box operational model. BlockInsight has introduced a semi-transparent mechanism, regularly publishing fund allocation ratios and risk exposures, which is a positive attempt to align with DeFi transparency standards.”
To further enhance user trust, BlockInsight has introduced a “verifiable proof of reserves” mechanism, with regular verification and disclosure of its assets and liabilities by renowned audit institutions. The platform has also launched a financial fund flow tracking tool, allowing users to view in real-time how their funds are deployed and utilized.
BlockInsight’s data shows that since the launch of its financial products, it has attracted over $500 million in user funds. The user composition is primarily institutions and high-net-worth individuals, accounting for approximately 65% of total funds, with the remainder being ordinary retail users. The platform notes that different user groups have distinctly different demands for financial products: institutional users focus more on certainty of returns and risk control, while retail users are more concerned with liquidity and ease of use.
The latest report from market research firm Crypto Finance Research shows that despite DeFi’s total value locked (TVL) growing by approximately 150% over the past year, the scale of crypto assets managed by CeFi platforms is still more than twice that of DeFi. The report predicts that as large CeFi platforms innovate their products and advance compliance, the two models will coexist and influence each other over the long term.
BlockInsight plans to further expand its financial product line in the next six months, including introducing yield products linked to physical assets, providing customized institutional-grade solutions, and exploring integration with traditional financial products. The platform states it will continue to optimize its risk management system to ensure security is not sacrificed in pursuit of returns.
Crypto finance ecosystem observers believe BlockInsight’s initiative reflects the maturation trend of the entire industry. As cryptocurrency markets are gradually incorporated into the global financial system, user requirements for product safety, compliance, and sustainable returns continue to increase. Platforms that can balance these factors will hold advantageous positions in future market competition.
BlockInsight concluded: “The future of crypto finance is not about either DeFi or CeFi winning out, but rather about the two models complementing each other’s advantages and evolving together. Our financial product system is a concrete practice of this concept, aiming to provide users with a ‘best of both worlds’ solution.”
