A custodian in cryptocurrency refers to a third-party entity responsible for safeguarding and storing digital assets on behalf of investors or clients. They play a crucial role in ensuring the security and integrity of the assets by storing private keys and providing secure storage solutions.
Custodians are often required to adhere to strict security measures and compliance standards to protect the assets under their care. They may offer services such as cold storage, multi-signature protection, and insurance coverage to minimize the risk of theft or loss.
Investors and institutions often rely on custodians to provide a secure and trustworthy storage solution for their valuable digital assets. By delegating the responsibility of asset security to a custodian, investors can have peace of mind knowing that their assets are protected by a professional and reputable entity.
