The article, published by OpenZeppelin, outlines a three-layer security framework for financial institutions entering onchain finance. Layer 1 focuses on code security, emphasizing the use of audited libraries like OpenZeppelin Contracts and ERC standards to minimize vulnerabilities. Layer 2 addresses operational security, covering key custody, multisig configuration, deployment pipelines, and monitoring. Layer 3 involves compliance posture, requiring multi-dimensional risk assessment for institutional-grade due diligence. The piece stresses that security must be embedded throughout the development lifecycle, not treated as a one-time check. It advises early-stage institutions to understand risk basics, while advanced teams should focus on audit readiness and ongoing security processes.

Key facts

• Three layers: code security, operational security, and compliance posture.
• Use audited libraries like OpenZeppelin Contracts to reduce attack surface.
• Operational security includes key custody, multisig, and deployment controls.
• Compliance requires multi-dimensional risk assessment for institutional due diligence.
• Embed security across the full development lifecycle, not as a one-time event.