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RE: Auditing DeFi's Foundations: Navigating Security with Institutional Eyes

in #defi21 hours ago

That's an important step, but I don't think continuous monitoring alone will fully satisfy institutional compliance requirements. Institutions typically need a combination of standardized controls, independent audits, governance frameworks, clear accountability, and ongoing risk management. Continuous monitoring can provide real-time visibility into smart contract vulnerabilities and operational risks, which is a major advantage over traditional finance systems. However, regulators and institutional investors will likely also expect formal reporting standards, incident response procedures, third-party assurance, and compliance frameworks that align with existing financial regulations. In other words, continuous monitoring is likely to become a core component of institutional-grade DeFi, but it will need to be complemented by broader governance and compliance structures to achieve widespread institutional adoption.