Wall Street’s trillion-dollar dilemma: Why AI-powered hackers are keeping big banks off the blockchain
Traditional financial institutions are hesitant to move trillions of dollars of assets on-chain due to increasing security risks, highlighted by a surge in AI-driven hacks and exploits in decentralized finance (DeFi), with April 2026 being the worst month for such incidents in four years. CertiK's CEO, Ronghui Gu, emphasizes that the ongoing vulnerabilities in smart contracts and cross-chain bridges pose significant barriers to institutional adoption of blockchain technology.
For a professional tracking fintech and DeFi advancements, an important insight is the significant barrier posed by AI-driven security risks to institutional adoption of DeFi. Despite the potential for large-scale asset migration onchain, traditional financial institutions are deterred by the high frequency of smart contract vulnerabilities and cross-chain bridge hacks. Addressing these security issues is crucial for realizing the full potential of decentralized finance in institutional settings.