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Journalist
Sead Fadilpašić
Journalist
Sead Fadilpašić
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Interoperable Layer-1 blockchain Injective has launched an on-chain index (Ticker: TradFi) that tracks hundreds of the largest publicly traded stocks. This, said the team, is a massive step in merging traditional finance (TradFi) and decentralized finance (DeFi).
According to the press release shared with Cryptonews, Injective has introduced the TradFi perpetual market on the Helix decentralized exchange (DEX). “Traders can now seamlessly switch between crypto assets and traditional stock exposure within a single, decentralized platform.”
This maturation of the DeFi sector, the team argues, will encourage more teams to create novel financial products that focus on an integrated, democratized, and efficient global financial system accessible to all.
Global Investors in the US Market 24/7
Injective says that the launch of this index offers significant advantages to all users. First of all, the trading is open all day, every day. The TradFi perpetual market on Helix is available 365 days a year, enabling investors to react to global events in real-time.
This ability could have broader implications. “Helix could attract significant liquidity from both crypto natives and traditional finance participants,” the announcement argues. These will give “unique trading opportunities that otherwise wouldn’t be available.”
Also, this real-time quality of on-chain products could result in more efficient price discovery and reduced arbitrage opportunities between traditional and crypto markets.
Meanwhile, the TradFi on-chain index is permissionless. This means that brokerage accounts or US residency are not required, allowing all to participate in the US market.
Also, the index comes with new tools for portfolio hedging, allowing investors to take long or short positions on the broader US stock market.
Finally, the launch of the TradFi index could encourage the tokenization of other traditional financial instruments. This would subsequently result in a wider range of assets becoming accessible on blockchain platforms.
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A Move That Further Brings TradFi On-Chain
As noted above, Injective has launched the on-chain index through its DEX Helix. Its goal is to tokenize all financial assets, enabling their sale, purchase, and trade fully on-chain.
“By bringing the most sought-after traditional finance markets on-chain, we’re not just creating a new trading product; we’re redefining what’s possible in decentralized finance,” said Eric Chen, CEO of the Injective Foundation. “This is a major step towards a future where all financial assets are accessible on-chain, 24/7, to anyone in the world.”
Furthermore, the launch of the TradFi perpetual market follows the AI Index perpetual market launch, which also works to merge DeFi and TradFi.
“By enabling permissionless trading of traditional assets, Injective is eliminating inefficiencies associated with legacy markets, providing lower fees, enhanced transparency, and seamless global access,” the team said.
Additionally, Injective recently also announced its rebrand, as well as new core Injective products: the Injective Hub and the explorer InjScan.
Meanwhile, some other companies recently came out with new products described as “S&P 500 for crypto.”
in November 2024, major crypto exchange Coinbase unveiled its Coinbase 50 Index (COIN50), a benchmark representing the top 50 digital assets listed on the exchange.
In December, CoinMarketCap, a major provider of crypto market data, launched the CoinMarketCap 100 Index (CMC100 Index), which measures the performance of the top 100 cryptocurrencies by market capitalization.
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