Definition of Custody

In the context of cryptocurrency, a "custodial" asset means an asset is placed under the care of a third party. This is similar to how banks have custody over their customer's funds. A Custodial Wallet refers to a wallet whose private key management falls under the care of a company. Examples of Custodial wallets include Coinbase, Nexo and other wallets where users do not have access to their private keys.

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Related Terms

Pre-sale

A typically exclusive token sale event preceding a public ICO

Cryptocurrency

A form of digital currency that utilizes cryptographic protocols to record ownership and prevent counterfeiting

Option

It is a financial instruments that refers to a contract offers the buyer the right to buy or sell an underlying assets at a specified price and time.

Byzantine Fault

A byzantine fault is where an error has occured, yet a computer system does not know due which component/what failed to the lack of information and continues to iterate on a given instruction.

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