Exchanges Are Racing to Become Crypto's Distribution Layer
Crypto platforms are evolving into comprehensive distribution layers, offering services beyond trading, such as payments, onchain apps, and yield generation. Inspired by Asia’s “superapp” model, platforms are competing to control the main user interface, as owning the user relationship now holds more power than controlling base protocols. Exchanges like Binance are pursuing an all-in-one “superapp” strategy, integrating trading, payments, wallets, and more into a single interface. In contrast, Kraken is developing a federated model with specialized apps linked by shared backend infrastructure, allowing targeted user experiences while controlling the underlying distribution system. Other major platforms like Coinbase, OKX, and Bybit are similarly expanding their offerings, bundling onchain wallets, DeFi, and NFT marketplaces with traditional services to maintain user bases and interface dominance. The core battle is over who controls user discovery and third-party app access, as regulatory clarity increases. The winning model—whether single superapps or federated ecosystems—will likely set the foundation for the next wave of mainstream crypto adoption.
