Custodial

Custodial refers to a service or platform where a third party takes possession and management of a user's private keys and, by extension, their digital assets. In this model, users deposit their cryptocurrencies into an account managed by a centralized entity, such as a cryptocurrency exchange or a digital asset custodian. While the user retains ownership rights to the assets, the third party technically holds the private keys necessary to access and move those funds, acting as a custodian on the user's behalf.