Custody: Who Actually Holds Your Digital Assets?

Self-custody, qualified custody and multi-signature arrangements compared, with the questions every investor should ask.

The custody spectrum

Custody ranges from a single private key on a personal device to a regulated qualified custodian with insurance and segregated accounts. Each point on the spectrum trades convenience against control.

Multi-signature and MPC

Multi-signature and multi-party computation split signing authority so that no single person or device can move funds alone. This is now standard practice for institutional balances.

Questions to ask

Where are keys generated? Who can authorise a withdrawal? What is the recovery procedure? Is there insurance, and what does it actually cover?

Key takeaways

• The custody spectrum: Custody ranges from a single private key on a personal device to a regulated qualified custodian with insurance and segregated accounts.
• Multi-signature and MPC: Multi-signature and multi-party computation split signing authority so that no single person or device can move funds alone.
• Questions to ask: Where are keys generated? Who can authorise a withdrawal? What is the recovery procedure? Is there insurance, and what does it actually cover?.

Risk disclosure

This article is educational content published by Vaultero Capital and is not investment advice, a recommendation, or an offer to buy or sell any asset. Digital assets are highly volatile and you may lose some or all of the capital you commit. Projected or historical returns are not a reliable indicator of future performance. Consider your objectives, time horizon and tolerance for loss, and seek independent professional advice where appropriate. Full terms are set out in our risk disclosure.