Exploring the future of digital asset custody

At Money20/20 Europe, The Paypers sat down with Mehmet Kafadar, Director of Paribu Custody, to discuss the latest trends and developments in digital‑asset custody.

Could you please tell us more about the average crypto user in Turkey in terms of demographics and consumer profile?

Absolutely. In fact, our latest Cryptocurrency Awareness and Perception Survey at Paribu showed that crypto is no longer a niche topic in Türkiye. Almost everyone we surveyed had heard of it, and about one in four said they actively use it. The typical user is a man in his thirties with a university degree, but what stands out more is how quickly awareness and engagement have spread across different age groups and backgrounds.

In your view, when did digital asset custody start to move into the mainstream? What factors contributed to this shift?

I think digital asset custody started moving into the mainstream around the time institutional interest in crypto began to grow more seriously, which was during the pandemic. That was a turning point. We saw major financial institutions starting to take crypto seriously, not just as a speculative asset but as something worth building infrastructure around.

At the same time, regulatory conversations globally became more focused, which gave companies more confidence to get involved. Another big driver was the need for better security. As the value of digital assets grew, so did the risks, and that pushed custody solutions to evolve quickly. Reliable custody became a must-have.

The combination of institutional demand, regulatory clarity, and the need for secure infrastructure is what really brought custody into the spotlight. I believe custody will continue to play a central role as digital assets become more integrated into traditional finance and more accessible to a broader range of users.

Who should be paying attention to digital asset custody—who needs to build, integrate, or partner to offer such solutions, and why is it essential?

Anyone involved with digital assets needs to pay close attention to custody. This includes crypto companies, traditional banks, fintech platforms, and larger businesses. If you hold or manage digital assets, having a secure and compliant way to protect them is absolutely essential.

Some organisations may choose to build their own custody solutions, while others will benefit from partnering with specialised providers. Either way, custody is the foundation for trust and security in the digital asset space. Without it, companies cannot confidently offer services, grow their business, or meet regulatory requirements.

As digital assets become more mainstream, I believe custody will become even more important. The expectations around security, transparency, and compliance will continue to rise, making it a key focus for anyone in this space.

At Paribu, we see ourselves as part of this solution. We provide secure, scalable custody services designed to meet the needs of institutions and businesses as they navigate the evolving digital asset landscape. Our technology and expertise help clients protect their assets while focusing on growth and innovation.

The digital asset space still faces scepticism, particularly around security and the perception that digital assets lack real-world representation. What do you see as the main challenges for the custody industry in gaining broader trust and adoption?

The biggest challenge for custody right now is definitely trust around security. Even though the technology has come a long way, people still remember stories of hacks and lost funds, which continue to be a problem today.

Proving that digital assets can be kept safe without compromise is something we all need to keep working on. Custody providers have to help change that perception by showing how these assets are meaningful and backed by clear rules. To gain wider trust, the industry needs to be more transparent and work closely with regulators. It’s about making sure people understand the security in place and the real value behind digital assets. That’s how custody will truly earn broader acceptance.

How can the industry address and overcome these challenges?

The industry can overcome these challenges by being more open about how custody works and the security in place. Clear and consistent regulation is key, and working closely with regulators helps build confidence and support a safer ecosystem.

At Paribu, we focus on creating custody solutions that prioritise security and transparency, which we believe are essential for trust. Custody providers globally must keep improving their technology to stay ahead of risks and keep assets secure. That ongoing commitment is what will help digital assets gain wider acceptance.

What would you recommend as best practices for financial institutions looking to offer digital asset custody services?

If a financial institution wants to offer digital asset custody, the most important thing is to prioritise security from the start. Protecting assets with strong technology and making sure there are no weak points is essential.

Being clear with clients about how their assets are protected builds trust. Helping your team and customers understand digital assets better also makes the whole process easier. Partnering with experienced custody providers who understand the space can speed up delivering reliable solutions while allowing you to focus on growing your business.

Finally, what’s your impression of Money20/20 this year? Any trends or conversations that stood out to you?

Money20/20 this year was a great moment for the industry. The focus on how people and technology come together really stood out, especially with AI playing a big role in improving customer experiences and fighting fraud.

Paribu was proud to be a five-star sponsor of Money20/20 Europe, which gave us a great platform to connect with leaders shaping the future of finance. I had the opportunity to speak about the importance of secure and scalable digital asset custody and how it fits into the broader fintech ecosystem.

For me, the event highlighted how innovation and customer trust go hand in hand. As digital assets and traditional finance come closer together, building reliable infrastructure will be more important than ever.

 

About author

Mehmet Hüseyin Kafadar is Director of Digital Asset Custody at Paribu, where he leads the design and deployment of secure, scalable blockchain infrastructure. Originally trained in medicine, Kafadar transitioned into technology and has built a decade-long career at the forefront of blockchain development.

His previous roles include Senior and Lead Blockchain Developer at Paribu, where he led engineering teams in developing custom wallets, staking infrastructure, and MPC-based custody systems across multiple blockchain networks. Prior to joining Paribu, he held technical positions at TokenSuite and DijitalPara, focusing on smart contract development and cryptographic systems.

Today, he oversees cross-functional teams of engineers and product managers, aligning regulatory compliance with technical innovation. With deep expertise in distributed systems, cryptography, and backend development, Kafadar also serves as a technical representative for Paribu at international conferences.

 

About Paribu Custody

Paribu Custody is a distinguished digital asset custody provider, counted among the few globally and standing alone in Türkiye. It is a digital asset custody service developed for institutional clients that enables businesses to build and scale on the blockchain through independent wallets and a secure, end-to-end infrastructure. Its proprietary ColdShield® technology offers unmatched security by eliminating single points of failure.

 

For more information about Paribu Custody, please visit the website or LinkedIn page.