Non-Custodial Service

Definition ∞ A non-custodial service is a platform or application where users retain complete control and ownership of their digital assets, rather than entrusting them to a third party. This means the service provider never holds the user’s private keys, which are essential for accessing and managing funds. Decentralized exchanges and self-custody wallets are prime examples of non-custodial offerings. This model prioritizes user autonomy and minimizes counterparty risk.
Context ∞ Non-custodial services are a central theme in discussions about decentralization, security, and user sovereignty within the cryptocurrency ecosystem. News frequently contrasts non-custodial solutions with custodial services, especially following security breaches or regulatory actions against centralized entities. The growing demand for self-custody solutions underscores the importance of this model for many digital asset users. This trend promotes individual control.