Custody and Transfer

Definition ∞ Custody and transfer pertain to the secure holding and movement of digital assets. Custody involves the safekeeping of private keys that control access to cryptocurrencies and other digital tokens, while transfer refers to the process of sending these assets between addresses or accounts. In the digital asset realm, custody can be self-managed (non-custodial) or handled by third-party services (custodial), each presenting distinct security and control implications. Secure and verifiable transfer mechanisms are fundamental to blockchain operations.
Context ∞ The topics of custody and transfer are central to discussions around institutional adoption and regulatory oversight of digital assets. News frequently covers new solutions for institutional-grade custody, which aim to address security and compliance concerns for large asset holders. Debates also persist regarding the regulatory classification of custodial services and the appropriate consumer protections for asset transfers across various platforms.