Definition ∞ Custody solution bypass refers to methods or scenarios where digital assets are held or transacted without utilizing established third-party custodial services. This often involves individuals retaining direct control over their private keys, managing their own wallets, or engaging in peer-to-peer transactions. While offering greater autonomy, bypassing institutional custody can introduce heightened security risks if not managed with expert care.
Context ∞ The state of custody solution bypass is a central discussion point in the ongoing debate between self-sovereignty and institutional security within the digital asset space. A key aspect involves the trade-offs between user control and the protections offered by regulated custodians. Future developments may see hybrid solutions emerge, combining elements of self-custody with institutional safeguards, as regulatory frameworks for digital asset custody continue to evolve.