Custody

A third party holding crypto assets on a client's behalf.

Security & Custody Also called custodian, custodial

Qualified custodians provide institutional-grade key management, insurance and audit trails, and their existence is a precondition for most regulated products including spot ETFs.

Custody is convenient and, for large institutions, legally necessary. It also reintroduces exactly the counterparty risk that self-custody eliminates.

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