Institutions Seek Enhanced Blockchain Security and Legal Clarity After DeFi Exploits

Institutions are calling for improved blockchain security and legal clarity following significant DeFi exploits in April, according to Angus Fletcher, head of digital assets at State Street. Fletcher emphasized the need for clearly defined cross-chain legal rights and interoperability to ensure the safe scaling of blockchain-based assets for institutional use. According to NS3.AI, the urgency for these measures has been heightened by a $295 million attack on Drift. Dennis Bree, head of institutional operations at Morpho, noted that curators managing assets worth $10 billion to $15 billion are also inquiring about the proper functioning of digital vault accounting.