Skip to main content

Custody Options

When your business accepts stablecoin payments or handles digital assets, one of the most important decisions you’ll make is how to store and secure your funds. In crypto, this decision is referred to as “custody”—who controls the private keys, and by extension, the assets. The page below outlines the main custody options available to businesses, along with the pros and cons of each.

1. Self-custody​

With self-custody, your business holds its own wallet keys and manages access internally. You’re fully in control of how and where funds are stored.

Examples:

  • A hardware wallet (cold storage) stored in a secure location
  • A self-hosted multisig wallet like Gnosis Safe
  • A mobile or desktop wallet managed by a designated team member

Pros:

  • Full control over your assets
  • No third-party risk
  • Works well with decentralized platforms and DeFi tools

Cons:

  • More responsibility for key management and backups
  • Risk of internal error or loss if not set up carefully
  • Limited support for advanced recovery or access controls unless manually implemented

Best for: Startups, small teams, or crypto-native businesses with in-house experience

2. Third-party custody​

Third-party custodians are regulated platforms or institutions that hold digital assets on your behalf. This model is closer to a traditional bank or brokerage account.

Examples:

  • Coinbase Custody
  • BitGo
  • Anchorage Digital
  • Fireblocks (for enterprises)

Pros:

  • Built-in security, compliance, and insurance coverage
  • Useful for audits, reporting, and regulatory clarity
  • Ideal for teams that don’t want to manage keys directly

Cons:

  • Less direct control over funds
  • Potential delays for accessing or moving assets
  • Typically involves onboarding, KYC, and service fees

Best for: Larger companies, institutions, or businesses in regulated environments

3. Hybrid custody​

Hybrid custody combines aspects of both models. Businesses use tools that allow them to retain partial control (like co-signing with a third party), automate workflows, or embed custody directly into their product.

Examples:

  • Multisig wallets with partial external oversight
  • Wallet-as-a-Service (WaaS) platforms with programmable access
  • Shared key setups with disaster recovery plans

Pros:

  • Balance between control and convenience
  • Flexible access management across roles or departments
  • Useful for platforms that need to manage many wallets at once

Cons:

  • Slightly more complex setup
  • May still involve some reliance on service providers
  • Best for: Crypto platforms, fintech startups, or teams scaling wallet infrastructure

Choosing the right option​

When choosing a custody model, consider:

  • Who needs access to the funds
  • How often the funds will be moved
  • The size of balances being held
  • Regulatory and compliance requirements in your jurisdiction
  • Your team’s technical comfort level

Many businesses start with self-custody, then adopt hybrid or third-party models as they grow and face more complex needs.

Final thoughts​

Custody is more than just storing funds—it’s about designing a system of trust, access, and protection that fits your business. Whether you manage keys directly or work with a custodian, the goal is the same: keep your stablecoins secure, usable, and easy to manage across your team.

Next up:​

  • Wallets for Teams – Manage multi-user access securely
  • Hot vs Cold Wallets – Understand which storage method fits your flow
  • Popular Wallet Brands – Explore wallets that support your custody model