Paribu Launches Global Digital Asset Custody Service for Institutions

In a significant move that could reshape the landscape of institutional cryptocurrency management, Paribu, a prominent Turkish technology company in the crypto asset sector, has unveiled its new service, Paribu Custody. This global digital asset custody solution is designed to cater to a wide array of institutional clients, including banks, financial institutions, cryptocurrency exchanges, decentralized finance (DeFi) entities, and blockchain-focused startups.

The launch of Paribu Custody marks a notable expansion for the company, which has been operating since 2017 and currently serves 7 million users with its cryptocurrency trading platform. The new service aims to address the growing need for secure and compliant digital asset storage and management in the institutional sector, a crucial factor in the wider adoption of cryptocurrency and blockchain technology.

At the heart of Paribu Custody's offering is its proprietary ColdShield® technology, which integrates Multi-Party Computation (MPC), Software Guard Extensions (SGX), and Hardware Security Module (HSM) technologies. This sophisticated system divides clients' private keys into multiple fragments and distributes them securely to separate parties, ensuring that no single entity can access the complete private key. This approach significantly enhances security by eliminating single points of failure and providing a multi-layered defense against potential threats.

Cem Sağlam, Institutional Sales and Business Development Manager at Paribu, emphasized the unique position of their service, stating, "Developed by Paribu's skilled engineers and software team, our service sets the standard for digital asset custody security in Türkiye, making Paribu unmatched in the field. Our proprietary ColdShield® technology positions Paribu Custody ahead of global competitors."

The service offers flexible storage options, including cold, hot, and warm storage, to meet diverse asset storage needs. It also provides full API automation and a mobile application for managing all aspects of the custody process. These features are designed to streamline operations for institutional clients while maintaining robust security measures.

One of the key advantages of Paribu Custody is its focus on regulatory compliance. The service enables organizations to centralize their Anti-Money Laundering and Anti-Terrorist Financing compliance controls through a single interface. This feature, coupled with comprehensive Know Your Business (KYB) procedures, ensures that clients can adhere to legal standards and operate within a secure, compliant environment.

The implications of this service for the broader financial industry could be significant. Banks and financial institutions can now more easily diversify into crypto asset offerings, potentially accelerating the integration of digital assets into traditional finance. Cryptocurrency exchanges can enhance their security posture, which could lead to increased trust and adoption among users. For DeFi organizations and blockchain startups, the service offers a way to mitigate operational risks and ensure regulatory compliance, which could foster innovation and growth in these emerging sectors.

Looking ahead, Paribu Custody is positioning itself to handle the secure management of tokenized real-world assets (RWA), such as real estate, negotiable instruments, official documents, event tickets, and works of art. This forward-thinking approach suggests that the service could play a pivotal role in the broader tokenization trend, which many experts believe will be a significant development in the financial world.

The launch of Paribu Custody represents a noteworthy development in the institutional cryptocurrency landscape. By providing a secure, compliant, and technologically advanced custody solution, Paribu is addressing a critical need in the market. As institutional interest in digital assets continues to grow, services like Paribu Custody could play a crucial role in bridging the gap between traditional finance and the world of cryptocurrency and blockchain technology.