Why CFOs Considering Stablecoins and Crypto Need a Cybersecurity Strategy

Another day, another push by cryptocurrency into mainstream financial services.

BNY is reportedly handling additional services for the USDC stablecoin issuer Circle, while in Brazil, online-only bank Stark Bank is reportedly aiming to serve the country’s crypto startups.

From Block and Strategy’s high-profile bitcoin holdings to small businesses testing stablecoin transactions, cryptocurrency is weaving its way into corporate finance, with digital assets now being integrated into corporate treasury strategies, cross-border transactions and payment processing.

However, with great opportunity comes even greater risk. Last month, trading platform Bybit was the victim of a $1.5 billion theft, believed to be the largest in industry history.

For chief financial officers, the message is clear. Crypto adoption without a robust cybersecurity strategy is like leaving the vault door open with a neon sign that says, “Take what you want.”

The Securities and Exchange Commission set the tone for 2025 with its “Spring Sprint Toward Crypto Clarity,” an initiative to address the most pressing regulatory challenges surrounding digital assets. The series will begin March 21 with its inaugural roundtable, “How We Got Here and How We Get Out — Defining Security Status.”

Cybersecurity is a crucial area that corporate finance leaders cannot afford to overlook as they assess the viability of cryptocurrency and stablecoins for their organizations.

See also: Stablecoin Sandwiches? Here’s What CFOs Need to Know About Crypto Jargon

CFOs navigating the digital asset landscape are tasked with developing comprehensive cybersecurity strategies, particularly in light of the frequency of cyberattacks and the growing importance of know your business (KYB) compliance.

Those issues are only compounded when it comes to digital assets. The comparatively decentralized and pseudonymous nature of blockchain technology makes it an attractive target for fraudsters. CFOs must recognize that traditional cybersecurity measures are insufficient in protecting digital assets.

Unlike traditional banking, where fraudulent transactions can often be reversed, cryptocurrency transactions are final. If money is stolen due to cyberattacks or phishing schemes, recovering them is nearly impossible. A cybersecurity strategy ensures proper safeguards to prevent unauthorized access and fraudulent transactions.

So, what’s a savvy CFO to do? First, ditch the “wait-and-see” approach. Implementing iron-clad security practices, including multi-signature wallets, cold storage and real-time transaction monitoring, is no longer optional.

Cryptocurrency requires the use of digital wallets, which can be vulnerable to hacking, malware and insider threats. Private key management protects company assets. Employees handling digital assets need cybersecurity training, and companies must partner with trusted custodians and exchanges that meet regulatory standards.

Integrating cryptocurrency into corporate financial systems introduces new security vulnerabilities. Without a robust cybersecurity framework, companies risk exposing sensitive financial data and increasing the likelihood of cyberattacks.

Read also: Why Banks Might Want to Have a Blockchain Strategy

Finance and technology are increasingly intertwined, so cybersecurity is not just an IT concern; it is a financial imperative.

As governments introduce stricter regulations for crypto transactions, CFOs must ensure compliance with financial and cybersecurity regulations. Implementing cybersecurity best practices — such as know your customer (KYC) and anti-money laundering (AML) controls — can help prevent legal issues and fines.

For example, European cryptocurrency regulators are examining the OKX exchange. OKX is subject to the EU’s new Markets in Crypto Assets (MiCA) Regulation. Watchdogs are focusing on OKX’s Web3 service, which offers crypto traders access to a range of exchanges and blockchains.

The marketplace is responding to the emergence of new security needs. Blockaid, for instance, raised $50 million in a Series B funding round to help meet the demand for its blockchain security platform. The company plans to use the capital to expand its product development, enhance engineering teams and strengthen its research capabilities.

Data from the PYMNTS Intelligence report “Cybersecurity Risks Cause Middle-Market CFOs to Cancel Innovation Plans” found that only 44% of surveyed middle-market CFOs are investing in cybercrime protection.

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