Custody Definition - Glossary

Custody is the holding and safeguarding of assets on behalf of clients by a financial institution or third party.

Custody is the responsibility of securely holding and managing assets for clients. In the context of crypto/fiat exchanges like ChicksX, it involves safeguarding cryptocurrencies or fiat currencies on behalf of users. Custody services ensure that assets are protected from theft, loss, or unauthorized access. These services may be provided by the exchange itself or through a third-party custodian. Proper custody solutions are crucial for maintaining trust and security in financial transactions, offering peace of mind to users by ensuring their assets are safe and accessible when needed.