Jefferies Warns KelpDAO Hack Could Slow Wall Street's Blockchain Push

Jefferies said the $293 million attack on Kelp DAO on April 18 underscored critical infrastructure risks that could lead traditional financial institutions to reassess the speed of blockchain and tokenization adoption. In Jefferies' view, attackers minted uncollateralized tokens and borrowed across platforms, sparking selloffs and tightening liquidity. The incident is suspected to be linked to the Lazarus Group and exposed a single point of failure in cross-chain bridge verification mechanisms. As banks and asset managers accelerate tokenization of assets such as funds, bonds and deposits, Jefferies noted the risks may prompt some firms to delay rollouts and focus first on security reviews. Where cross-chain infrastructure is central, vulnerabilities could fragment markets and weaken the real-world usefulness of tokenized assets. Jefferies added that while confidence may take a near-term hit, the long-term direction remains intact. Stablecoins and other use cases still have room to grow as regulation advances and infrastructure continues to mature, though the sector remains early-stage and needs time to improve resilience. (CoinDesk)