DeFi's Security Issues Hinder Adoption by Big Banks, Executives Say

Decentralized finance (DeFi) must address its security vulnerabilities to attract institutional capital, according to industry executives at the Proof of Talk conference in Paris. Executives highlighted that DeFi's potential lies in transforming banks' back-office operations rather than speculative trading. However, persistent security flaws, particularly in blockchain bridges, are a major barrier. Societe Generale's Stéphanie Cabossioras noted that traditional banks are working on solutions, such as tokenized assets and regulated stablecoins, to bridge these gaps, according to CoinDesk.