Crypto glossary
Self-custody
Self-custody means holding your own crypto private keys in a wallet you control, rather than leaving assets with an exchange or other third party.
With self-custody, also called non-custodial ownership, only you hold the keys that can move your funds. No exchange, broker or bank can freeze, lend out or lose your coins, and you can use them in any blockchain application without asking permission.
The idea gained ground after high-profile failures such as Mt. Gox in 2014 and FTX in 2022, when customers lost access to deposits held by the platform. The crypto saying not your keys, not your coins sums it up.
The responsibility is total: there is no password reset or customer support if you lose your seed phrase or approve a fraudulent transaction. Tools such as hardware wallets, multisig setups and smart contract wallets with social recovery aim to make self-custody safer for ordinary users.
Example
Instead of keeping 1 BTC on an exchange, an investor withdraws it to a hardware wallet they set up themselves, so the exchange's solvency no longer affects whether they can access it.
Related terms
Latest articles on Self-custody
- Crypto Self-Custody Gains Importance As Cybersecurity Threats Expose Digital Risks
- Ripple CLO Urges Treasury to Protect Stablecoin Self-Custody
- Bank Crypto Custody: An Institutional Response to Problems Self-Custody Does Not Solve
- Bitcoin Self-Custody Has Costs Few People Talk About
- Your Hardware Wallet Isn’t the Weakest Link. Self-Custody Still Matters
