What is crypto custody? Who really holds your coins
By SendPay Business · · 2 min read
Crypto custody is about who holds the private keys that control a crypto balance. Whoever holds the keys can move the coins, so custody decides who you are trusting to keep them safe.
Custodial vs self-custody
With a custodial service, such as most exchanges and many apps, the provider holds the keys and you log in to an account. With self-custody, you hold the keys yourself, usually through a wallet protected by a seed phrase.
The trade-offs
Custodial services are easier to use and can help if you forget a password, but you rely on the provider staying secure and solvent. Self-custody removes that reliance, but if you lose your seed phrase or it is stolen, there is usually no way to get the coins back.
Questions to ask a custodian
- Is the provider registered or licensed where it operates?
- Are customer assets kept separate from the firm's own money?
- How much is held in cold storage, and is it independently checked?
- What happens to customer assets if the firm fails?
Where SendPay fits
SendPay platforms let your customers buy, sell and hold crypto inside your own branded app, with assets held with regulated partners and a trading fee you set. SendPay tells you in writing which licences apply to your platform before you pay.
Build it
Create your own financial platform.
Pick a template, name it, brand it, preview every page before you pay. Your brand, your users, your fees.
Build my platform →Questions people ask
Would a multisig set-up be safer?
See how many keys you can lose and how many a thief needs.
Multisig wallet calculator →Read next
This guide is general information, not legal or financial advice. SendPay Business is a technology company, not a bank, and does not take deposits; regulated services on the platforms are provided by licensed partners. PayPal, Patreon and Substack are named as reference points only and are not affiliated with SendPay Business.