Custodian

What is Custodian?

A financial custodian is a company that contains your financial assets. Custodial services are frequently targeted toward institutional investors in the blockchain industry who have sizable cryptocurrency holdings. In the cryptocurrency world, exchanges that maintain bitcoin wallets for their users are referred to as custodians.

Because cryptocurrencies are tangible objects rather than digital assets, storing them is different from saving currency. Digital currencies like Bitcoin and Ethereum are preserved and recovered via a blockchain, in contrast to banknotes, which can be saved and recovered from physical locations like a wallet or safe. Holders of cryptocurrencies do not have a right to physical money; instead, they control the keys to the blockchain addresses that represent their coin holdings. Digital custodians are cryptocurrency software, hardware, or hot wallets secured by a crypto exchange.