DeFi for Business: Understanding the Opportunities and Risks

Bank transfers take a long time. International payments rack up fees. DeFi changes this by letting you move money without waiting for banks. The technology runs on code that executes automatically, with no approval delays, no intermediaries, and no banking hours. Companies are now using this to settle international payments in minutes, but the speed creates new ways to lose money.

Billions got stolen from crypto platforms in 2025. For business leaders, the question is whether the benefits make the risks acceptable.

What Businesses Are Using It For

Real companies are finding practical uses for DeFi. Institutional money is moving on-chain.

Faster international payments: Suppliers get paid immediately upon delivery verification. This eliminates the 3-day float period and removes currency-fluctuation risk between the invoice and settlement. For companies with overseas suppliers, this means better cash flow.

Better returns on corporate cash: Corporate checking accounts pay almost nothing. While safe treasury bills pay around 4-5%, stablecoin strategies on-chain can yield double that rate. For companies sitting on significant cash reserves, that difference adds up.

Lower transaction fees: Instead of paying $30-$50 per wire plus exchange-rate markups, on-chain bulk payments often cost cents, regardless of the transfer size. For businesses that move money constantly, the savings add up fast.

Access to capital without credit checks: Traditional business loans need credit checks and weeks of processing. DeFi lending uses crypto as collateral. Deposit Bitcoin or Ethereum, borrow stablecoins, and use those funds for operations. Settlement happens in hours.

24/7 operations: Banks close. DeFi doesn't. If you need to move money at 2 AM Sunday, you can.

Where Things Go Wrong

These benefits come with a catch: the security model is unforgiving. Failures of that kind are the biggest threat, but the pattern changed in 2025. Total losses hit billions, yet attack numbers dropped sharply, 162 fewer incidents than the previous year. Protocol-level security improvements are working, forcing attackers to change tactics.

The shift is clear: criminals moved away from exploiting code vulnerabilities toward supply-chain attacks and phishing. Smart contracts are harder to hack, so they're targeting infrastructure and people instead.

Supply-chain attacks caused the most damage. Major custodial breaches in February alone topped a billion.

Phishing scams ranked second, stealing over 700 million. The worst type is "pig butchering," where scammers build trust with victims over weeks or months before convincing them to transfer crypto. These scams exploit psychology, not technology.

State-sponsored hackers stole billions by getting jobs inside crypto companies to gain internal access, then stealing from within.

What You Need to Know

Start with a specific business problem. It is not worth adopting DeFi just because it's new or because competitors are doing it. Use DeFi to address issues where the benefits outweigh the risks.

Security is not negotiable. You need wallets requiring multiple approvals for transactions. Keep most funds in offline cold storage that can't be accessed remotely. Use professional custody services. Train employees on phishing recognition.

Understand financial risks beyond security. Crypto prices can drop 70%. If you're using crypto as loan collateral, that means margin calls and liquidation. Code bugs cause millions in losses even on audited platforms. Regulatory changes could restrict activities overnight.

Your finance team needs real training. Digital asset management is inherently distinct from traditional treasury.

Bottom Line

The utility is real. Major institutions aren't touching this for the hype anymore; they're doing it for the efficiency. But billions got stolen in 2025. Most losses stemmed from operational security failures, not code exploits.

If you move money internationally or need better returns on corporate cash, DeFi is worth looking at. Just understand what you're getting into. The technology works. The question is whether you can handle the security requirements.