State Street's head of digital assets, Angus Fletcher, says the crypto industry must solve security issues now-before trillions in tokenized real-world assets come on-chain. Speaking Tuesday at Consensus Miami, Fletcher cited April's major DeFi hacks, including a $295 million exploit of lending protocol Drift, as proof that institutions need proper guardrails.
Fletcher emphasized that interoperability between blockchains must be clearly defined, and institutions need to understand legal title and rights across chains. “Our customers need to know and understand that. As institutions, it's critical we get there,” he said.
Dennis Bree, head of institutional at lending protocol Morpho, noted April saw some of the worst DeFi attacks to date, pushing curators to do more diligence on collateral risk. He said regulatory gray areas remain a barrier, citing a CFO's need to understand accounting treatment of receipt tokens on-chain.