Self-Custodial Assets

Definition ∞ Self-custodial assets are digital assets where the owner maintains direct and exclusive control over their private keys. This means the individual is solely responsible for securing their funds, without relying on a third-party custodian or intermediary. It embodies the principle of individual sovereignty over digital property.
Context ∞ The concept of self-custodial assets is a core tenet of decentralization within the digital asset space, frequently discussed in news related to user empowerment and security. While offering ultimate control, it places full responsibility for key management and security on the asset holder, making education on secure practices critical. Regulatory discussions often differentiate between custodial and self-custodial holdings, impacting compliance and consumer protection frameworks.