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Glossary·
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Definition

Custodial vs non-custodial wallet

Who holds the private key. Custodial means your service holds it on the user's behalf; non-custodial means the user holds it and your product never can move their funds.

Why it matters

This single choice sets your regulatory position, your security burden, and your support load. Holding keys for users can make you a regulated custodian in most jurisdictions.

How we approach it

We default to non-custodial and treat custody as a deliberate, legally reviewed decision. Where onboarding needs to feel like a normal app, we look at embedded wallets and account abstraction before taking custody.

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