The first Trillion Dollar Security (1TS) report highlights institutional friction with Ethereum UX and smart contracts, citing unsupported compliance workflows, insecure key management and risk frameworks that don’t align with onchain code

Quotes that support claims

Enterprise and institutional users face additional challenges in key management.

Compliance requirements in different industries and jurisdictions may require custom workflows or audit trails not supported by existing wallet software.

Systems built on smart contracts may sometimes break those assumptions, making it difficult for organizations to adopt Ethereum and manage risk appropriately.

existing frameworks often do not cleanly map onto smart contracts, usually assuming mutable code, centralized change control, and clear lines of accountability or legal liability.