Why don’t exchanges implement swap services?

Note: So Binance AND Coinbase apparently have this feature and I can verify Kraken has a “convert” feature on app. Still not quite sure how it actually works for Kraken but I will see if they have fiat - crypto direct swaps, seems like crypto - crypto swaps are available. I don’t know if that closes discussion but I’m curious to see if there is a usecase for the fiat - crypto swap angle.

I would like to add that while everyone is saying these exchanges have swaps, they remain in the exchange post-swap, not what I’m asking for in terms of landing directly into your self-custody wallet.

(Original Post)

Maybe I’m not seeing the obvious picture if someone could explain it to me: why don’t exchanges like Kraken, Coinbase, Binance, etc. implement a sort of complimentary swap feature with their exchange offerings?

The way I see it, a swap service can be handy in quickly trading one coin for another and having the coin land directly into an address of your choosing. This way, you are not holding funds at a CEX for too much time.

Yes, there are premiums associated with swap services today but wouldn’t exchanges also be the ones most capable of offering a better swap service than actual swap services?

A typical SS gets their coins from an exchange anyways, and they add on that trading premium to you, the customer. An exchange has no need to do that, they would have the full vertical integration.

As well, something like Kraken has really favourable on-boarding processes, so imagine if you were able to buy directly with your fiat and have the crypto in your own self-custody wallet. No withdrawal process necessary.

What do you guys think?