While Erbor fills the void that has been left behind by the collapsed SVB, experts warn of the potential risks of Stablecoin integration with banking.
Stablecoins increasingly integrates with traditional finances, which offers both risks and opportunities. In the midst of the launch of a Stablecoin-driven bank, Erbor, supported by Palmer Luckey and Palantir’s Joe Lonsdale, Crypto is increasingly exposed to Defi.
Mitchell Amador, CEO of the Blockchain security company Immunefi, shared his insights with crypto.news on this subject. According to Amador, the integration between banks and Defi protocols has different structural considerations. In particular, banks will have access to more functionality, but will also be exposed to risks.
“Dit voorstel om Stablecoins te gebruiken zo ambitieus is eigenlijk heel natuurlijk. En het zal waarschijnlijk in dit tempo de toekomst van Fintech en Banking meer uiteenvallen. Deze aanpak brengt echter risico’s met zich mee. Door het exporteren van de meeste van uw onderliggende grootte te exporteren en uw bankproducten veel interoperabel maken met een bredere financiële ecosyysteem, wordt u reliant op die ecosystemen – met name op het gebied van stabels en de Smart Contracts behind them – and it is responsible for a broader financial ecosystem, with a broader financial ecosystems and the responsible for them – and the smart contracts Behind to stablecoin Randards and the smart contracts behind them – and it is responsible for a broader financial ecosystems, and in particular the smart contracts behind them – and the responsible person.
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Banks will have to learn Defi protection
Most banks rely on regulated and closed systems, including Swift and Fedwire, for transfers. On the other hand, Defi protocols are controlled by third parties, which depend on smart contracts that may have vulnerabilities.
“You also develop a very particular focus on crypto authentication and crypto security, especially in the context of treasury management. Not all banks will succeed in this endeavor. Consider that most exchanges are effectively stablecoin-based banks today, with one loose bridge out into the fiat world. That’s basically what is being proposed here as well, “Mitchell Amador, Immunefi.
In recent years, crypto companies have had problems gaining access to banking services that the company found too risky. One bank, SVB, who regularly served crypto customers, collapsed in 2023 due to the dependence on the proceeds of the American treasury.
Read more: $ 2.4 billion lost in 2025 H1 Crypto Hacks – Exchanges and Defi Hit Hardenst: Report
