Repeated bridge hacks and falling yields are prompting institutional investors to question whether decentralised finance offers acceptable risk-adjusted returns. JPMorgan analysts say bridge security remains an industry challenge and raised doubts about broader institutional adoption. Large attacks on DeFi bridges this year totalled $328.6 million in losses. StateMind CEO and Symbiotic co-founder Misha Puchiatin says DeFi is overly complex and interconnected, making risks hard to assess. USDT yields on Aave lag U.S. Treasury rates.

U.S. cryptocurrency exchange Kraken has switched its cross-chain provider from LayerZero to Chainlink\'s Cross-Chain Interoperability Protocol (CCIP), Cointelegraph reported on Thursday. Kraken plans to apply CCIP as its dedicated cross-chain infrastructure for Kraken Wrapped Bitcoin (kBTC) and all future wrapped tokens. It cited security and risk management, pointing to features such as verification, default security design, 16 independent nodes and native rate limits.