Richard Teng Says CEXs and DEXs Are Complementary, Not Competitors

Key TakeawaysBinance Co-CEO Richard Teng addressed the balance between centralized reliability and long-term decentralization during a CEO Connect AMA.Teng said the CeFi vs. DeFi debate oversimplifies a rapidly evolving crypto landscape.Centralized exchanges remain critical entry points for most users today.Binance aims to responsibly bridge CeFi and DeFi through products like Binance Wallet and Binance Alpha.Balancing Reliability and DecentralizationDuring a Co-CEO Connect AMA on Binance Square, Binance CEO Richard Teng responded to questions about Binance’s role as critical infrastructure for the crypto ecosystem, and how the company balances centralization today with a more decentralized future.Teng said the issue ultimately comes down to choice and balance, rather than a strict divide between centralized and decentralized models.“The narrative of DeFi versus CeFi, or DEXs versus CEXes, oversimplifies the landscape,” Teng said, noting that the crypto ecosystem continues to evolve across multiple models at the same time.CEXes as Entry Points for the Crypto JourneyTeng acknowledged that decentralized exchanges and DeFi protocols are growing rapidly and innovating in meaningful ways — a development he described as healthy for the industry and reflective of increasing participation in decentralized finance.At the same time, he said centralized exchanges continue to play a crucial role, particularly for users beginning their crypto journey. CEXes offer easier onboarding, deep liquidity, security infrastructure, and user-friendly access, making them the most practical starting point for many users today and in the foreseeable future.“Our responsibility is to operate that infrastructure safely, transparently, and in a way that earns trust,” Teng said.Supporting a Responsible Transition to DeFiAccording to Teng, decentralization remains a long-term direction for the industry, but the goal is not to force or resist that transition. Instead, Binance aims to help users move between centralized and decentralized environments responsibly and securely.He highlighted products such as Binance Wallet and Binance Alpha as examples of how Binance is working to bridge CeFi and DeFi, enabling users to access decentralized applications while benefiting from centralized security, usability, and infrastructure.CEXs and DEXs as Complementary ModelsTeng concluded by emphasizing that centralized and decentralized platforms are complementary rather than competitive, serving different user needs, risk profiles, and levels of experience.By offering users a range of options, he said, Binance supports sustainable ecosystem growth while maintaining its role as a trusted platform within the broader crypto market.