Mehmet Hüseyin Kafadar - Digital Asset Security, Reinvented - TOKEN2049 Singapore 2025

Good afternoon everyone. Uh let me start with a thought experiment. You check your digital asset wallet. $1,000 is there. You come back 15 minutes later.

It's all gone. Zero. What would you do? I'm not saying this to alarm you. My aim is is to show the unique reality of digital assets and need for security.

That simple question, what would you do is exactly why we are here today to discuss how to build a future where digital assets are not only innovative but also safe and dependable for everyone. So, let's begin with the retail investors. Why? They are often the most enthusiastic to join this new world, but sometimes the least prepared against sophisticated attacks. First, fishing and fake apps.

A fishing email might look perfect. The logo, the sender address, everything feel exactly like your exchange or wallet provider. It could be second malicious smart contracts. On the surface, they look perfect, but hidden inside that contract, there's a line of code granting access to your entire wallet. Third, hot wallet vulnerabilities.

They are popular for a reason. They are fast, convenient, always online. But being always connected also means being vulnerable. And finally, seat phrase theft. The oldest and still most devastating trick.

Sometimes a website asks you to re-enter your seat friends. Sometimes it's just writing it on a paper or sometimes taking a photo of it. And once it's taken, your funds are gone. That's why our industry has a responsibility to protect, educate, and build solutions that allow retail investors to participate safely. In digital assets world, the danger isn't always a big red warning sign.

Sometimes it looks like a just another green button. We should raise awareness about it. If we can design better tools, clearer interfaces and give people the knowledge about it, people should pause and ask, wait, what I'm really signing here. Then we can transform that moment of hidden risk into a moment of confidence. Yeah, we talked about losing a 100K.

For an individual, losing it could be surely devastating. It might be a saving for one's education or it could be the house payments on a for first home. No matter what, it's years of hard work, savings, and sacrifice. However, it's gone in an instant and that's why these risks matter so much. Now, let's raise the stakes.

Imagine you are a CFO and now $5 billion at risk for institutions. The risks are multiplied. they skyrocket. By the way, it's not only money at stake. It's reputation, shareholder trust, regulatory exposure, and in some cases, the survival of the company itself.

That's why custody, governance, and robust risk management aren't just technical checkboxes. They are the foundation. When institutions engage with digital assets, the risk landscape expands dramatically. It's not only external hackers they need to worry about. Threats emerge from multiple fronts such as insider threats or operational errors.

Not every loss comes from evil intent. Sometimes it's human error. In traditional finance, mistakes can often be reversed. In digital assets, one wrong move can be the final move. Third, hot wallet exploits.

Hot wallets allow speed and flexibility. But for institutions holding significant assets, a hot wallet exploit isn't just a small bridge. It can mean millions or billions disappearing in moments. Therefore, institutions must build defenses against insiders, errors, vulnerabilities, and compliance gaps. Because in this space every weakness is an open door.

Yes, a company needs more than this. Simply holding assets safely is not enough. You need to use those assets. Institutions need to manage liquidity, rebalance portfolios, move funds across entities. These aren't optional.

They are daily requirements of running a modern treasury. And payments. You need the ability to make payments, settlements or client transactions directly from custody without taking unnecessary risk by moving assets outside of secure environment. Now, staking institutions can afford to let assets just sit idle. Yield opportunities like staking are now a core part of digital assets management and the secure access to defy world.

All of these must happen inside custody since the safe assets are ones that never leave the fortress. No transfers to external wallets, no exposure to weaker systems, no unnecessary risk. So custody must evolve from passive storage to active financial operations hub. For companies, peace of mind isn't a nice to have feature. It's an absolute necessity.

is the foundation which trust, credibility, and long-term participation in digital assets is built on. This is where our solution comes in. Cold shield. The cold shield technology is the fortress for your digital assets. It's a multi-layered security architecture.

Cold Shield isn't just about keeping assets safe. It's about enabling institutions to operate confidently in digital assets, knowing the fortress is always holding strong. So whether you are an individual investor or an institution, the principle is the same. Your assets must always be secure. If you want to learn more, come and pay a visit to Paribu.

We are right there at PB572. Thank you.