Key Highlights
- Atomic Digital has deployed Blockaid’s Onchain Monitoring across its DeFi portfolio.
- The system tracks wallets, smart contracts, and protocols connected to the firm’s positions.
- Alerts can flag unusual fund movements, potential exploits, and activity involving external dependencies.
Atomic Digital, an institutional investment firm, has deployed Blockaid’s Onchain Monitoring across its DeFi portfolio, adding security monitoring to positions held across decentralized finance protocols.
According to Blockaid’s announcement on September 11, the system covers Atomic Digital’s wallets, portfolio positions, and the DeFi protocols supporting those positions.
The deployment comes as institutional investment firms increasingly manage positions across multiple onchain venues, where exposure can depend on smart contracts and infrastructure operated by third parties.
Monitoring covers DeFi positions and dependencies
Atomic Digital is a market-neutral, multi-strategy hedge fund serving professional and institutional investors. Its activities include quantitative trading, OTC structured products, protocol deals and actively managed DeFi portfolios.
Its DeFi positions can depend on lending markets, vaults, trading venues, price oracles and other external infrastructure.
Blockaid said its system will track the contracts and wallets associated with those positions as the portfolio changes.
The monitoring can flag potential exploits, unusual fund movements and activity involving external dependencies such as price oracles.
Alerts provide additional risk information
Blockaid said alerts are delivered to Atomic Digital’s team when potentially abnormal activity is detected.
The alerts can include information about affected contracts, transaction flows and the severity of the activity.
The monitoring does not remove the underlying risks associated with DeFi protocols. Instead, it gives the investment team additional information for assessing changes across its onchain positions.
Institutional DeFi exposure creates additional complexity
Unlike traditional portfolios, DeFi positions can rely on infrastructure controlled by different protocols and development teams.
An exploit or malfunction affecting one component can therefore have consequences for positions held elsewhere in the ecosystem.
This can make portfolio monitoring more complicated when assets are spread across multiple lending protocols, smart contracts, and other onchain systems.
Atomic Digital’s deployment illustrates how institutional investors are incorporating blockchain-specific monitoring into broader risk-management processes.
Blockaid’s earlier security work
The deployment follows several other Blockaid initiatives focused on detecting threats across blockchain transactions.
In July 2026, Blockaid reported that crypto hacks resulted in more than $1.1 billion in losses during the first half of the year. The company attributed the losses to incidents including Lazarus-linked attacks, bridge exploits and EVM vulnerabilities.
The figure is Blockaid’s own assessment and has not been independently verified based on the information available.
In the same month, Blockaid partnered with 0xPredicate on a system designed to screen smart-contract transactions for stolen funds and wallets associated with exploits before transactions are executed.
That system operates before transactions take place, while the Atomic Digital deployment is focused on monitoring an investment portfolio and its underlying infrastructure.
Blockaid reports billions of transactions scanned
Blockaid said its security products have scanned more than 6.3 billion transactions since 2025 and blocked approximately 585 million attacks.
These are company-reported figures rather than independently audited performance measures.
An earlier Circle partner-page listing cited different figures, including approximately 1.5 billion dApp connections protected, $168 billion in user funds secured, and 256 million attacks prevented.
Because the figures cover different periods and categories, they should not be treated as a direct comparison.
DeFi security becomes part of institutional risk management
The Atomic Digital deployment highlights a broader issue for institutional participation in DeFi: investment exposure can extend beyond the asset itself to the smart contracts and infrastructure supporting it.
For firms managing positions across several protocols, identifying changes in those dependencies can become part of routine portfolio risk management.
Blockaid’s role in the Atomic Digital portfolio is therefore focused on monitoring and detection rather than removing the underlying risks associated with decentralized finance.
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