**[Gate Research Institute Report Analyzes Wallet Evolution and the On-Chain Transformation Trend of CEX]**
Gate Research Institute has released the report *"The Evolution of Crypto Wallets and the On-Chain Transformation of CEX"*, which reviews the journey of wallets evolving from Bitcoin-era private key and signature tools to becoming the core gateway of on-chain finance. The report highlights that DeFi Summer propelled wallets from low-frequency asset management tools to critical gateways for dApps. After 2022, All-In-One wallets became mainstream, demonstrating their capabilities in high-frequency scenarios such as inscriptions and memes, gradually strengthening control over transaction pathways and traffic distribution.
The report also mentions that as the wealth effect of VCcoins diminishes and new on-chain assets and high-yield opportunities spill over, the traditional model of CEX users staying long-term on exchanges is being challenged. This has driven CEXs to accelerate their on-chain strategies, exploring embedded wallet solutions to extend compliance, fiat channels, and user scale into the on-chain ecosystem.
Using Gate Web3 as an example, the report points out that the on-chain transformation of CEX is not a simple replication of non-custodial wallet models. Instead, it deeply integrates account systems, trading capabilities, and on-chain applications while preserving user asset sovereignty, thereby enhancing asset retention and user lifecycle value.
Gate Research Institute believes the industry is entering a phase of functional restructuring, where financial capabilities are migrating to wallets through on-chain and modular approaches. CEXs are responding to boundary shifts by binding themselves to ecosystems through on-chain transformation.