Binance CEO Explains Strategy: Wallet and Alpha Over Launching a New DEX

Key Takeaways:Richard Teng says DEX growth is healthy for the crypto ecosystem, with over $480B in monthly volume according to DeFiLlama.Binance does not plan to directly compete by launching a DEX but is instead focusing on Binance Wallet and Binance Alpha.These platforms serve as bridges between CeFi and DeFi, offering users simple access to decentralized finance with Binance’s scale and security.DEX Growth Reflects Healthy Industry MomentumDuring a Binance Square AMA, CEO Richard Teng responded to a question about whether Binance plans to compete in the decentralized exchange (DEX) space, given the rise of platforms like Hyperliquid.“Many DEXes are growing and evolving, which is a healthy sign for the industry. It shows increasing interest and participation in DeFi,” Teng said.According to DeFiLlama, DEX trading volume surpassed $480 billion in the past 30 days, marking a steady rise year-over-year and underscoring the sector’s long-term momentum.Binance’s Strategy: Wallet and AlphaTeng clarified that Binance’s strategy is not focused on launching a new DEX but on strengthening user access to DeFi through Binance Wallet and Binance Alpha.“Our strength lies in delivering what users want, sometimes even before they realize it,” Teng noted.Binance Wallet has rapidly grown as a non-custodial solution, allowing users to interact directly with DeFi protocols while retaining control of their funds.Binance Alpha has already “captured most market share within this space,” Teng said, positioning it as a central hub for token launches, rewards, and DeFi participation.CeFi Meets DeFiRather than competing head-on with standalone decentralized exchanges, Binance’s strategy is to act as a bridge between centralized finance (CeFi) and decentralized finance (DeFi).By combining Binance’s liquidity, security, and compliance framework with direct DeFi access through Wallet and Alpha, the company seeks to give users the “best of both worlds.”Industry ImplicationsBinance’s stance highlights a broader trend: centralized exchanges are shifting away from direct competition with DEXes and instead focusing on integration and accessibility.As Teng put it, “Competing by launching a DEX isn’t the only way to engage with DeFi.”With Binance Wallet and Alpha already gaining significant traction, Binance is positioning itself as the gateway for mainstream users into DeFi—without the steep learning curve typically associated with self-managed platforms.