Paribu Launches Global Digital Asset Custody Service for Institutional Clients

Turkish technology company Paribu has unveiled Paribu Custody, a new digital asset custody and management service aimed at institutional clients globally. This development marks a significant step in the evolution of cryptocurrency storage and management, offering enhanced security and compliance features for a wide range of organizations including banks, financial institutions, cryptocurrency exchanges, decentralized finance entities, and blockchain startups.

Paribu Custody leverages the company's proprietary ColdShield® technology, which integrates Multi-Party Computation (MPC), Software Guard Extensions (SGX), and Hardware Security Module (HSM) technologies. This advanced system divides and distributes private keys across multiple parties, ensuring that no single entity can access the complete key. The multi-layered security architecture prevents key reassembly even during transfers, effectively eliminating single points of failure and providing clients with unprecedented asset security.

Cem Sağlam, Institutional Sales and Business Development Manager at Paribu, emphasized the unique capabilities of their service, stating that it sets the standard for digital asset custody security in Turkey and positions Paribu ahead of global competitors. The platform offers flexible storage options, including cold, hot, and warm storage, catering to diverse asset storage needs.

One of the key features of Paribu Custody is its ability to automate processes through APIs and provide a user-friendly mobile application for managing transactions. This combination of automation and accessibility allows organizations to maintain full control over their digital assets while streamlining operations.

The service also addresses the critical issue of regulatory compliance. Paribu Custody enables organizations to consolidate Anti-Money Laundering and Anti-Terrorist Financing compliance controls through a single interface. This feature, coupled with comprehensive Know Your Business (KYB) procedures, ensures adherence to legal standards and fosters a secure operational environment.

The implications of this service are far-reaching across various sectors. Banks and financial institutions can now diversify their crypto asset offerings with enhanced security. Cryptocurrency trading platforms can ensure compliant storage of client funds, while decentralized finance organizations can bolster asset security and mitigate smart contract risks. For blockchain startups, Paribu Custody offers a way to reduce operational risks and maintain regulatory compliance, particularly in storing investor assets.

Looking ahead, Paribu is developing the platform to manage tokenized real-world assets (RWA), including real estate, negotiable instruments, official documents, event tickets, and works of art. This forward-thinking approach positions Paribu Custody as a comprehensive solution for the evolving landscape of digital and tokenized assets.

The launch of Paribu Custody represents a significant development in the cryptocurrency and blockchain industry. By providing institutional-grade security and compliance features, it addresses key concerns that have historically hindered wider adoption of digital assets by traditional financial institutions and large corporations. This service could potentially accelerate the integration of cryptocurrencies and blockchain technology into mainstream finance and business operations.

As the digital asset ecosystem continues to grow and evolve, services like Paribu Custody play a crucial role in building trust and stability in the market. By offering robust security measures and regulatory compliance tools, Paribu is contributing to the maturation of the cryptocurrency industry, potentially paving the way for increased institutional participation and broader acceptance of digital assets in the global financial system.