CoinW writes the hybrid playbook for the Web3 era

Over the past year, centralized exchanges have begun a quiet but important shift. Instead of staying within closed platforms, leading CEXs are increasingly exploring

Centralized exchanges are adapting to a new crypto landscape. After the FTX collapse, the industry is focused on decentralization, and exchanges are pivoting to meet this shift in user behavior and market expectations.

This is also driving tighter global regulations, presenting a dual challenge for exchanges to stay competitive while building trust.

To navigate this, a new class of platforms—often dubbed “Next-Gen CEXs”—are emerging. These exchanges are no longer limited to trading services; they are building infrastructure, launching protocols, and supporting entire on-chain ecosystems.

The rise of Next-Gen CEXs marks a broader industry transition. As user expectations evolve, exchanges are being pushed to deliver both performance and trust. And as the boundaries between centralized and decentralized platforms are becoming increasingly blurred, market dynamics force CEXs to redefine their roles beyond mere trading venues.

Why CEXs Are Going On-Chain

The push toward on-chain products is not just about innovation. It is also a direct response to the evolving landscape that centralized exchanges (CEXs) must navigate.

Regulatory pressure is increasing globally. In many countries and regions, CEXs are facing stricter KYC/AML requirements and greater demands for transparency. This leads many exchanges to reconsider their traditional off-chain models, which have relied on more opaque operations.

As regulatory expectations evolve, CEXs are exploring on-chain solutions as a potential way to meet compliance standards. These solutions also offer opportunities to unlock new growth.

At the same time, user expectations are evolving. Both retail and institutional investors seek greater control over their assets and demand enhanced transparency and ownership—features inherent to decentralized systems.

CEXs, as key players within the blockchain ecosystem, increasingly recognize the need to meet these demands. They also understand the importance of embracing their role in fostering the transition to a more decentralized world.

Technologically mature solutions such as roll-up, zero-knowledge proof and account abstraction have enhanced scalability and reduced costs. With their larger resources and broader user base, CEXs are well-positioned to integrate innovations which promote the development of on-chain products to meet user expectations without compromising performance.

Still, the shift toward on-chain infrastructure brings real challenges. For CEXs, lowering the entry barrier for Web2-native users remains key. This is especially important when it comes to UX design and onboarding flows.

Security is another priority, as new custody models introduce unfamiliar risks, while fragmented liquidity and ecosystem silos overcomplicate cross-chain integration.

Building Beyond the Exchange

As centralized exchanges adapt to a shifting industry landscape, some are going beyond product rollouts to explore deeper roles in the on-chain ecosystem. CoinW is one such example.

Its approach combines technical innovation with user education and ecosystem integration. This positions it not only as a trading platform, but also as an active contributor to the decentralized future.

DeriW: Bringing Efficient Performance to On-Chain Derivatives

As the demand for decentralized derivatives trading continues to grow, many existing platforms face trade-offs between speed, cost, and decentralization. Users are often forced to choose between performance and control. DeriW enters this landscape with a bold ambition: to deliver a truly seamless, self-custodial trading experience without compromising on efficiency or scalability.

DeriW is an independent on-chain initiative designed to redefine the derivatives trading experience. Currently in public testnet, DeriW is a decentralized perpetuals platform built as a Layer 3 chain on Arbitrum Orbit, which was developed by CoinW team. By leveraging custom infrastructure, it delivers high-speed performance with minimal gas fees. It has a throughput of over 80,000 TPS, offering a seamless, high-performance on-chain trading experience within a fully decentralized architecture.

DeriW introduces a Pendulum AMM that adjusts liquidity dynamically based on open positions. This helps to reduce slippage and improve capital efficiency. It also supports up to 100x leverage on major pairs (leverage is subject to jurisdictional availability), along with a self-custodial design. Such features strike a balance between user control and accessibility.

Rather than replicating existing DeFi models, DeriW is exploring a hybrid direction—building for performance while retaining decentralization principles. It highlights how exchanges like CoinW can channel their operational know-how into the next generation of decentralized trading infrastructure.

PropW: Lowering Barriers, Raising Competence

For aspiring traders looking to grow without risking their own capital,PropW offers a powerful launchpad. PropW is an initiative dedicated to advancing trader education, risk-free training, and capital empowerment—key pillars for helping users transition from Web2 to Web3. Developed by CoinW teams, it helps address a key challenge facing many centralized exchanges: onboarding new users unfamiliar with crypto. It also equips them with the tools and confidence needed to become active participants in decentralized markets.

At its core, PropW provides a simulated trading environment. Users can practice strategies