With the rising interest in digital assets from institutional and retail investors, custody options have also experienced parallel growth. As a result, different kinds of custody choices have evolved as the market changes, and new providers are working to establish the structures and controls that are most effective for particular markets and offerings.
Self-custody, exchange wallets and third-party custodians are the various choices available for users to safeguard their cryptocurrencies. Custodians in the world of digital assets function similarly to traditional financial markets in that their primary duty is to take care of and protect their clients’ assets by holding the private key on behalf of the asset holder, preventing unauthorized access.