Definition ∞ Non-custodial transactions are digital asset transfers where the user retains complete control over their private keys and, consequently, their funds throughout the entire process. Unlike custodial services where a third party holds assets, non-custodial methods ensure that no intermediary has access to the user’s assets at any point. This approach prioritizes user sovereignty and eliminates counterparty risk associated with centralized entities. It represents a core principle of decentralized finance.
Context ∞ Non-custodial transactions are a recurring topic in crypto news, particularly in discussions surrounding decentralized finance (DeFi), self-custody, and regulatory oversight. The emphasis on user control contrasts sharply with the operational models of centralized exchanges, leading to ongoing debates about security, convenience, and regulatory compliance. The increasing adoption of non-custodial solutions highlights a growing user preference for greater control over their digital assets.
Blockchain Knowledge
Cryptocurrency Foundation
Cryptospace Newsfeed
