DeFi won't win over big banks until it fixes its hacking problem, executives say
Financial executives at the Proof of Talk conference argued that DeFi must address persistent security vulnerabilities and hacking risks before it can be adopted by mainstream banks. They suggested that the technology's true value lies in back-office operational efficiency rather than speculative trading.
Why it matters
Security concerns remain the primary barrier to the integration of decentralized finance into the traditional global banking system.
Share Share this article Copy link X icon X (Twitter) LinkedIn Facebook Email DeFi won t win over big banks until it fixes its hacking problem, executives say Lenders are particularly interested in blockchain s back-office applications, but security failures are blocking wider adoption. By Olivier Acuna | Edited by Sheldon Reback Jun 3, 2026, 9:12 a.m. 2 min read Make preferred on The panel at Proof of Talk in Paris. (Olivier Acuna/CoinDesk) What to know : Industry executives say DeFi’s long-term value lies in overhauling banks’ back-office operations rather than in speculative trading. Institutional capital will remain sidelined, however, until DeFi addresses persistent security flaws. Societe Generale said regulated banks can close these gaps with tokenized assets and bank-issued stablecoins, offering the safety and custody that mainstream clients demand. The long-term value of decentralized finance (DeFi) depends on its ability to transform the back-office operations of global banking institutions rather than providing alternative trading environments, according to asset management and banking executives.
The article presents a balanced view of industry expert opinions regarding the limitations of current blockchain technology.
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