Kraken Co-CEO Arjun Sethi has predicted a convergence between centralized exchanges (CEXs) and decentralized exchanges (DEXs), describing them as different expressions of the same coordination function. In an interview on PondTalk, Sethi outlined the evolution of crypto trading through three phases: the custody era, the smart-contract era, and the emerging "hybrid era." This new phase is marked by unified liquidity, compliance bridging, and on-chain identity systems. Sethi emphasized that CEXs and DEXs will increasingly adopt each other's strengths, with DEXs enhancing user experience and CEXs moving towards greater on-chain transparency. He foresees a market shift towards shared liquidity rather than shared custody, ultimately leading to a self-regulating market system.