This issue invites Bitget's product head KH to discuss the concept of the Universal Exchange (UEX) proposed by Bitget's CEO, focusing on exchange product upgrades, asset diversification, AI and risk control systems, integration of RWA (Real World Assets) with traditional finance, regulatory and compliance issues, and competitive positioning with other exchanges. The content of this article reflects the interviewee's views and does not represent Wu's views. Readers are advised to strictly comply with the laws and regulations of their location.
Opportunities for CEX and DEX Integration
Cat Brother: Before we officially start the interview, could you introduce yourself, including your current role and some of your experiences at Bitget?
KH: I am responsible for our products and part of the business here, and my current position is CPO. Most of my time is still focused on product development, and over the past year, I have had the privilege of participating in more business and a wider range of products.
Cat Brother: Recently, many exchanges have been exploring the integration of CEX and DEX, and have launched related products. Why did you choose to launch such products or upgrades at this time? In your view, what is the most pressing issue that the current market needs to address?
KH: First, we have observed a core issue that CEX faces in this cycle: users want to trade a wider range of cryptocurrencies or quality assets, including "million-level long-tail" assets such as memecoins on-chain, as well as the tokenization of traditional assets (RWA). The demand for these types of assets conflicts with CEX's past ability to support spot and contract markets through the "listing model." In other words, users' desire for diversified asset trading is increasing, while solutions for various assets are becoming more mature, necessitating a breakthrough in the trading scope of CEX compared to the past. This is also why many CEXs are integrating with DEXs, driven by these factors to some extent.
We believe this requires a systematic solution rather than fragmented features. First, we need to ensure broader support for asset supply; as the number of assets increases, users will face challenges in discovering good trading opportunities, whether there is a good trading experience, whether there are more suitable trading tools, and whether there is sufficient security and risk control assurance as the asset pool becomes richer. Therefore, at this point, based on the industry's major trends, we proposed the new concept of UEX.
Definition of UEX and Enhancements to User Experience
Cat Brother: So, for ordinary users, especially less professional traders, how should they understand UEX? Besides the name change, what specific enhancements can they expect in terms of actual experience? For example, speed, types of tradable assets, etc. Can you elaborate?
KH: UEX stands for Universal Exchange, but unlike the concepts of CEX and DEX, where the letters C and D indicate the degree of centralization, U can have multiple meanings, such as Universal Assets—broader and more diverse global assets; Unified Account—no need to switch between different accounts, solving all trading needs with one account; User-friendly—achieving a more user-friendly trading experience with the help of AI, etc. Ultimately, which "U" is more recognized by users and the community, we are willing to let time verify.
UEX was initially a concept proposed internally, based on the major trends we observed. We hope to break the inertia in the team's thinking about the CEX path with a single concept: not just patching up the original product, but fundamentally rethinking how the product can meet new demands. We proposed "tearing down that wall and rebuilding a market without walls," and we hope that through this new positioning, users and the industry can more accurately feel the changes we bring.
Regarding the enhancements users can feel, echoing the pain points mentioned earlier: the first is a broader and more diversified range of crypto assets. Our on-chain trading product underwent a major upgrade in mid-September, supporting a full range of assets across multiple mainstream chains, allowing users to directly use USDT/USDC from their Bitget spot accounts to purchase on-chain tokens in the millions with a smooth experience through our custody and on-chain trading protocol.
In terms of traditional financial assets, we have launched perpetual contracts for stock RWA indices of underlying assets such as Apple and Nvidia; we have now launched stock tokens covering the "Magnificent Seven" and other large tech companies, as well as some popular crypto-related companies, with contracts supporting up to 25x leverage and significantly improved liquidity.
In the area of US stock tokens, we are the first CEX to collaborate with US stock token issuer Ondo, integrating its liquidity on 1inch, and we now support over 100 US stock tokens, allowing users to purchase directly in the Bitget on-chain trading market; the liquidity currently provided by Ondo can basically meet user demand.
Another direction is in the TradFi sector, where we are actively promoting cooperation and integration with MetaQuotes. In Q4, we will launch a feature that allows trading of hundreds of TradFi assets such as gold, forex, and stock indices through Bitget via the MT5 channel. The underlying CFD contracts are also highly liquid in the traditional market.
Overall, we have made a significant leap in asset diversification, expanding from our previous focus on crypto assets to a full range of on-chain assets, RWA US stock tokens and their derivatives, and covering TradFi assets like gold, forex, and stock indices.
The second issue users face: when the asset pool is greatly expanded, can users better find trading opportunities? On one hand, we will upgrade product layers such as market data and fundamentals; on the other hand, we aim to bring about a paradigm shift in trading based on AI—we believe this is a longer-term trend. AI can fundamentally bridge the trading gap, helping everyone improve their trading behavior and habits, which is also why we want to provide smarter trading tools.
The third issue, after the assets and trading capabilities are greatly enriched, can we provide a better risk control system and user protection? This is also the direction we are taking in each sector to establish a safe and reliable risk control system through centralized capabilities, including the $700 million user protection fund we launched, as well as our global service and market teams, all aimed at ensuring users can use our products with peace of mind.
On-chain Risk Control Mechanism and Fee Explanation
Cat Brother: You just mentioned "safety and peace of mind." I personally use both exchange products and on-chain products, and many on-chain tokens carry high risks, with some even being "Pikachu schemes" or fake meme projects. I saw in Bitget's announcement that UEX will use risk control screening and multi-dimensional indicators for quality assurance. My understanding is that only tokens that pass the screening can be purchased on your exchange. How does this screening mechanism work? Is it public? Also, what is the difference in fees when users directly use your features to purchase on-chain assets compared to purchasing directly on-chain?
KH: This is a great question. Because there are many on-chain assets, the risks can be more apparent. CEXs previously operated on a permissioned basis, with the listing team conducting reviews, which is the "whitelist" logic. We have implemented comprehensive asset openness in on-chain trading, which does not mean unlimited or unrestrained access, but rather a "permissionless + blacklist risk control" approach, shifting from a "whitelist" to a "blacklist" logic. Assets that may be included in the blacklist include those related to pornography, violence, Pikachu schemes, internal and external manipulation, malicious issuance risks, rug pulls, etc. To address this, we have made several efforts: first, we have integrated multiple professional on-chain data service providers to provide multi-dimensional labels, while also developing our own on-chain multi-factor risk model algorithm. The effect of this is that even with full openness, users can search for assets by inputting contract addresses, but if an asset is deemed high-risk, trading will be prohibited. Second, users will see a risk level score, and we are iterating on the scoring mechanism, gradually disclosing the risk factors that have been triggered to users, reflecting which dimensions have higher risks. We hope to provide a reliable mechanism and trader protection through our products and algorithms, which is a challenging but correct endeavor.
Regarding fees, there is not much difference in the on-chain trading products themselves; our current pricing is 0.5%. We hope to bring a core smooth trading experience—such as the different gas fees for each on-chain, the need to exchange native tokens for gas, and concerns about cross-chain issues—all of which we aim to simplify for users in our on-chain trading underlying protocol. Users only need to hold USDT/USDC in their CEX spot accounts to complete the buying and selling of on-chain assets, supporting multiple chains with fast speed and smooth experience. This is a significant change brought by the product.
Balancing Experience, Assets, and Security
Cat Brother: CEX and DEX have always faced the "impossible triangle" of user experience, asset richness, and security. How do you view this impossible triangle in relation to UEX? Is it possible to expand the boundaries under certain circumstances and integrate the advantages of CEX and DEX?
KH: I think this triangle is just an "impossible to achieve" situation at a certain historical stage. With changes in underlying solutions and product forms, there is an opportunity to find a better solution. Our goal in building UEX is to have richer assets, better experiences, and guaranteed security. This is also thanks to the current cycle: the integration of DEXs, the maturity of RWA issuance capabilities, etc., have led to significant changes in asset richness and user experience compared to before.
Security has always been the lifeline we value and respect the most; it is the "baseline" for exchanges. For UEX, our long-term accumulated experience, resources, and team in CEX give us the capability and responsibility to ensure risk control and security, ultimately delivering a good product experience to users.
Cat Brother: It sounds like you are aiming to create a "super entry point," covering both on-chain and traditional financial stocks, etc. Is this a new direction for transformation? How do you plan to differentiate yourself from other exchanges?
KH: "Super entry point" is our direction for product upgrades: a one-stop shop, richer assets, better experiences, and safety that is simple and easy to use for users is the intuitive product value we want to bring.
Regarding differentiation, Bitget spent a long time in the early stages as a follower in product development, and now the core products of various leading exchanges have very little differentiation, with significant homogenization. This year, we can see exchanges trying various directions in assets, DEX, payments, etc. We propose our own stance: to capture the opportunity of the "super entry point" in this cycle, believing that the timing is now ripe. In the past, people remembered us for our contracts and copy trading; in the future, we hope everyone remembers Bitget as a UEX, a super one-stop entry point, where there are the most comprehensive trading varieties and useful trading tools.
Cat Brother: You just mentioned your $700 million fund, and I also saw in the announcement that there is a unified risk control and protection fund mechanism. In extreme cases, how are user assets protected? How is the specific compensation or reimbursement mechanism designed? Can you share more details?
KH: The protection fund is a user protection mechanism that we have consistently upheld and continued over the years. As the platform scales, the fund amount has also accumulated, and it has now been upgraded to $700 million. We hope to provide users with broader protection. For example, in DEX, when using personal wallets or participating in certain high-risk protocols, users may not have the level of protection and service that CEX offers. However, in our UEX, as long as it is a service, protocol, or product we provide—whether on-chain products or TradFi assets—if there are system unavailability or security issues that harm user interests, we will follow up on customer complaints. This has always been the responsibility and commitment of CEX, and it is also the "user first" principle that we consistently practice.
Industry Prospects of UEX and User Group Analysis of PERP DEX
Cat Brother: In your view, will UEX be the mainstream direction for exchanges in the future? Recently, there have been other similar exchange products, such as PERP DEX, and Binance is also launching similar routes. How do you view this track?
KH: PERP DEX is indeed a hot topic and track right now. As industry participants, we have great respect for and look forward to more excellent teams and products like Hyperliquid emerging, as everyone pushes the boundaries of products and technology. Healthy competition can make the industry more prosperous. Derivatives have always been the trading product line that exchanges and users pay the most attention to, and the growth of DEX compared to CEX is more evident, which is why it has become a hot topic.
When it comes to the differences with UEX, the user groups of PERP DEX and UEX are still quite different. Compared to PERP DEX, our products are more suitable for mainstream users today. We have made many efforts to create a better experience, hoping to make it easier for a broader range of mainstream users to use our products. This is a significant difference in the current user base. This may be the case for a short time, but I personally believe that decentralization is indeed the future of the industry. The vision of using blockchain to promote financial system reform that everyone had when they first joined the industry is becoming clearer step by step, which is exciting.
Cat Brother: Will Bitget be launching products similar to Hyperliquid soon?
KH: This is a field and track that we are very focused on, and we will definitely have our important layout in this direction.
Positioning of AI Functions in Bitget's Strategy
Cat Brother: I saw in your announcement that you mentioned many AI-related functions, including information Q&A, smart money tracking, etc. What position do these AI products hold in your overall strategy? Are they auxiliary tools, or are they an important part of future core development? Will there be a dedicated AI department in the team to work on related products? Can you introduce that?
KH: From last year to the first half of this year, we have formed an excellent AI product and technology team, which is the foundation for the subsequent product launches. The team members come from backgrounds including Microsoft, Alibaba DAMO Academy, and more. AI capabilities are fully integrated across the platform, with some less visible aspects, such as internal AI coding, translation and localization, and translation review and recommendation for content products, which were previously done manually and are now completed by AI; the intelligent customer service AI bot that everyone uses is also developed in-house. The most noticeable feature for users is that we launched the AI assistant GetAgent in August—we position it as a crypto-based AI trading assistant.
It integrates a large number of foundational models and algorithm capabilities, along with data and services from both inside and outside the exchange, as well as crypto news and information. Users will find that it can deeply analyze market trends and perform news searches; more importantly, compared to general AI products, GetAgent knows your positions, understands your trading style, can formulate more reasonable strategies, and even place orders and execute trades using natural language. Compared to some general products or third-party tools, this is the advantage of the exchange creating an agent.
Regarding the two core strategies of UEX, one is extreme asset diversification, and the other is the upgrade of intelligent trading tools. This logic is similar to the evolution of traditional media from print to the internet era: when content supply is greatly opened up, the way users consume content changes, and recommendation systems become core. Similarly, after the expansion of asset supply, the upgrade of trading tools must be synchronized, which is why AI is the second core product strategy.
We believe in this trend, although it requires time for validation and fermentation. Currently, everyone is accustomed to placing orders using a GUI graphical interface; will it be necessary to have a GUI in the future? Will more and more people interact with agents/chatbots to complete trades? This is the change we hope to promote.
Exchanges have a situational advantage in this process; user trading occurs within the exchange, allowing us to deeply integrate trading and truly help users analyze, manage their portfolios, and execute trades. GetAgent currently has a leading design architecture, integrating over 50 internal and external MCP tools. We see that various platforms and startup projects are launching Crypto+AI products. After multiple internal and external evaluations, Bitget's GetAgent is currently one of the most deeply integrated trading scenario AIAgents in the market. We welcome everyone to experience it and share their feedback with us after use.
How UEX Faces Compliance Regulation and Traditional Asset Tokenization
Cat Brother: You just mentioned tokenized stocks, RWA, gold, forex, and other traditional assets. If all of these are expanded into UEX, will it be quite difficult in terms of compliance and regulation? How do you plan to respond?
KH: Compliance has always been a key consideration in our product design. We conduct strict due diligence on RWA asset issuers, including whether they hold broker-dealer licenses, compliance of the entity, restrictions on countries and user privacy requirements, as well as the equity/dividend schemes that everyone is concerned about. We maintain close communication with active issuers in the market. For example, the issuer Ondo we are currently integrated with has completed very strict bilateral due diligence. In terms of gold and forex, there are mature integration solutions; Mideast is a globally recognized online forex/CFD service provider, and we will obtain the necessary licenses and complete all required licenses for integration while adhering to the highest standards of AML/CFT to ensure that our products comply with legal and regulatory requirements.
Cat Brother: Regarding tokenized stocks, there is considerable controversy over liquidity and ownership rights, and this track is still in its early stages. Are you currently using Ondo's products? Have you researched the specific schemes for ownership rights regarding these products? Do you have any new ideas?
KH: As a product still in the early development stage, the liquidity of RWA tokens is indeed a phase issue. Therefore, we currently do not have any RWA tokens listed on the spot matching market, but have chosen to access the liquidity pool of Ondo on 1inch, with liquidity provided by its designated market makers. Compared to directly listing tokens within the exchange, this method of "external liquidity" is actually more concentrated and ideal, which is why we made this choice.
Regarding dividends, each issuer has different schemes. For example, Ondo will factor dividends into the "equity price" of the token at a discount. In the long run, if the underlying asset continues to pay dividends, the price of Ondo's token may be higher than the traditional market price; it is not a one-to-one peg but reflects the reinvestment premium of dividends in the price of RWA assets. For users, holding the token is equivalent to an "ever-reinvesting dividend" equity price. I believe that as the industry matures, more recognized solutions will emerge.
We have also made innovations in RWA derivatives: we launched perpetual contracts based on RWA indices for US stocks. Considering that the same underlying asset (such as Tesla) may have multiple issuers with different liquidity during their launch periods, we have created index contracts for the same underlying asset, with different issuers contributing to the price of the index based on their trading volume and liquidity, maximizing the inclusion of effective liquidity to form a more stable and effective pricing market.
Cat Brother: During normal trading hours for stocks, such as Tesla during US stock trading hours, will you consider the current price performance of US stocks as part of the index price? If it is outside trading hours, will you use the price of the tokenized stock products you just mentioned to create a weighted index for the derivative price? Can this be understood?
KH: We will not directly use the current price of the underlying traditional market, as we support tokenized derivatives. Traditional prices can serve as a reference for price constraints or risk control, but in principle, the underlying for derivatives (PERP) is RWA tokens. For example, Ondo's RWA tokens are tradable 5×24 hours, with trading not allowed on non-trading days, and trading allowed 24 hours on trading days.
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