What is Self Custody?

The blockchain can be thought of like a bank for everyone.

Usually when people own assets like US dollars or stocks, they are held by a custodian such as a traditional bank.

Digital assets like Bitcoin aren’t stored with a custodian. Instead, Bitcoin is stored on the blockchain in a sort of “digital vault”.

You can only access and move assets in this digital vault if you have a secret private key that is associated with the vault.

Since only you, the keyholder, have access, this is called Self-Custody.

Self-custody is unique because assets aren’t held by a third party – increasing efficiency while reducing fraud.

Typically, keeping assets with a third party is a requirement to participate in today’s economy.

Self-custody enables individuals who may not have access to the traditional financial system, like the unbanked, to be connected in an open, global economy with just a smartphone and the internet.