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Banks are about to hit pause on blockchain plans because DeFi's $293 million security gap just became their problem.
- The Kelp DAO exploit exposed single-point-of-failure risks in cross-chain bridges that institutional tokenization depends on.
- Aave absorbed $200 million in bad debt from the attack, signaling that traditional finance can't ignore DeFi contagion anymore.
- Wall Street's tokenization push slows down as security audits get mandatory before asset transfers between networks resume.
- Jefferies expects institutional blockchain deployments to stall in the near term despite longer-term bullish fundamentals on stablecoins.
- Bitcoin ETF inflows hitting $4.2 billion this week show institutional capital still flows in. It just flows into safer entry points while infrastructure matures.
- The real threat isn't the hack. It's the reputational cost of moving billions into systems with obvious architectural weaknesses.