TradFi

TradFi, short for traditional finance, refers to the conventional financial system that includes banks, stock exchanges, and other financial institutions that follow centralized, regulated models. TradFi encompasses all the financial services that operate within government regulations and established frameworks, contrasting with decentralized finance (DeFi) and cryptocurrency. TradFi involves services like loans, savings accounts, investments, and insurance provided by traditional financial institutions. For example, borrowing money from a bank for a mortgage is a form of TradFi.