Custody / Custodian

An institution or service responsible for holding and protecting financial assets on behalf of clients. Found in both traditional finance and digital-asset ecosystems, custodians manage safekeeping, segregation, and accurate accounting of funds.

Why it Matters

Custodial accounts directly address counterparty risk and operational security. When funds are held by a trusted custodian, clients gain protection against theft, loss, or mismanagement. In regulated environments, custodians also ensure compliance with capital requirements and audit trails, building confidence for institutional participants and end users alike.