From Exchange to Ecosystem Builder

CoinW’s 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 on-chain innovation, combining the efficiency of centralized systems with the transparency of decentralized finance.

This shift reflects deeper changes in user behavior and market expectations in the post-FTX era. With growing demand for decentralization and tighter global regulations, exchanges face a dual challenge: staying competitive while building trust. In response, a new class of platforms—often dubbed “Next-Gen CEXs”—is 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. 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 negligible gas fees. Its throughput exceeds 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), alongside a self-custodial design. Such features strike a balance between user control and accessibility.

Rather than replicating existing DeFi models, DeriW represents 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 and sharpen their skills without the pressure of real capital at stake.

For those ready to take the next step, the platform offers performance-based funding. Up to $200,000 in trading capital is accessible for experienced users. This enables them to gain real-market experience in a structured, merit-driven format.

Such a model combines education, opportunity and incentive. With such features as multi-level trading challenges, profit-sharing and full entry-fee refunds for successful participants, PropW lowers the entry barrier. It also reinforces a culture of disciplined trading.

As an integral part of the CoinW ecosystem, PropW is committed to creating a supportive and growth-oriented trading environment for traders worldwide—empowering them to achieve both financial success and personal breakthroughs.

Pioneering the Future of CEXs

In a shifting crypto landscape, CoinW isn’t just keeping pace; it’s setting the direction. By fusing CEX efficiency with on-chain innovation, it’s redefining what an exchange can be.

CoinW is not just a trading hub, but a builder of the next-generation Web3 economy.

This commitment to shaping the future of crypto was also on full display at Token 2049 Dubai, where CoinW served as platinum sponsor. CoinW stood out with Dubai Blockchain Center and their other global partners across the entire Web3 spectrum.

Throughout the event, CoinW showcased its regional engagement in the Middle East and its broader global strategy-highlighting compliance, security, and ecosystem collaboration. As regulation, decentralization, and user demand converge, CoinW is building the blueprint for the next era of centralized exchanges - one that is continuing to build in accordance with evolving global standards.

Disclaimer

DeriW is an independent initiative and operates separately from any regulated CoinW exchange entity. It is a non-custodial and non-regulated platform, and users access DeriW entirely at their own risk.By using DeriW, users acknowledge full responsibility for their trading decisions and asset security. As with all decentralized and self-custodial platforms, users are solely responsible for their trading decisions and asset security. Participation involves inherent risks that should be carefully evaluated.