Wall Street warns DeFi's security risks are a barrier to bank adoption

Executives from global asset management firms and traditional banks have highlighted the security vulnerabilities of decentralized finance (DeFi) at the Proof of Talk conference in Paris, CoinDesk reported. While they acknowledged DeFi's potential to revolutionize the back-office infrastructure of global banking beyond speculative trading, they warned that large-scale institutional capital will never enter the space unless its significant hacking risks are resolved. In April alone, hacking incidents or vulnerability exposures occurred on as many as 27 days. Ben Nadereski, co-founder of Solstice, criticized that many DeFi developers are overly focused on coding while neglecting the core financial responsibilities of capital management and defense.