Third Party Custody
Third party custody means an external organization safeguards assets or the means of controlling those assets on behalf of investors, funds, issuers or other clients. The custodian may be responsible for traditional financial assets, digital assets or both, depending on the service.
Why it matters to you
Using a third party can reduce some of the operational responsibilities associated with holding assets directly, but it also creates reliance on that organization. Investors should understand who the custodian is, what exactly it holds and how assets are protected and recorded.
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