It's interesting to see the different approaches CEXs have taken to get onchain. I see significant variance in:

[1] architecture

[2] value accrual back to the exchange

[3] product overlap between chain + exchange

[4] motive

Binance

[1] L1 using proof of authority

[2] No direct value accrual from chain back to exchange, but was able to launch the BNB token

[3] Binance ties BNB to some exchange products like Binance Launchpad or Binance Alpha. Binance revenue from CEX trading has also been used to buy back and burn BNB

[4] It feels like the aim is to have the exchange and chain work together as a vertically integrated ecosystem around BNB

Coinbase

[1] L2 on Ethereum

[2] The exchange captures the gross profit from operating the sequencer. Did not launch a token

[3] Leverages the chain to improve exchange product offerings, eg holds exchange users' USDC deposits on Base for lower cost and faster settlement times + drives cbBTC adoption on Base. Now integrating DEXs on Base directly into the exchange app, accelerating listing velocity

[4] It feels more like the chain exists to accelerate the exchange roadmap and reduce costs

Bybit

[1] DEX on Solana

[2] TBD but will presumably charge trading fees

[3] Extends the exchange into the onchain economy, improving the trading experience on the exchange. This is the fastest path to new listings with no burden of chain development

[4] The most lightweight way to increase listing velocity for the exchange

The sequence of these launches is also interesting. Binance launched its L1 first, then Coinbase launched an L2, and now Bybit launches just a set of smart contracts

New launches progressively focus less on owning the full stack and more on accelerating a specific vision or product of the exchange. We've also seen Coinbase launch a wallet and OKX launch a wallet + DEX aggregator

The battle moved up the stack, closer to the user