Definition ∞ A centralized custodian is a third-party entity that holds and manages digital assets on behalf of clients. These institutions assume responsibility for the security and accessibility of cryptocurrencies, often providing services like trading and storage. Users delegate control of their private keys to the custodian, trusting them to safeguard their holdings. This arrangement contrasts with self-custody where individuals maintain direct control.
Context ∞ Centralized custodians are frequently discussed in crypto news regarding institutional adoption and regulatory developments. Their role is significant for large investors and corporations seeking secure, compliant ways to hold digital assets. Debates often revolve around the trade-off between convenience and security versus the decentralized ethos of cryptocurrency. News reports frequently cover new services or regulatory approvals impacting these custodial providers.
Blockchain Knowledge
Cryptocurrency Foundation
Cryptospace Newsfeed
