Tradfi

Tradfi is short for Traditional Finance. It is the world’s largest economic ecosystem estimated at over $630 Tn. Tradfi encompasses securities, commodities, forex, and other trading markets. It also covers asset management, payments, insurance, property, emissions, supply chains, and the regulations governing them. Tradfi is also used in reference to the centralization of services and the data generated by these services.

It is in contrast to Decentralized Finance (Defi)- which seeks a more democratized approach to servicing these markets with more accountability and ultimately more transparency vis-à-vis blockchain technology.

References:

https://academy.binance.com/en/glossary/tradfi
https://www.imf.org/en/Publications/fandd/issues/2022/09/Point-of-View-Defi-Tradfi-must-work-together-Michael-Casey
https://hedera.com/learning/decentralized-finance/tradfi