Crypto custody is the act of storing cryptocurrencies on behalf of another party for a fee. It removes the technical bit of digital currency storage from a user and transfers that responsibility to a third-party custodian.
Apart from making it easy for individuals and institutional crypto holders to store their crypto assets, the security aspect is also taken cared of by these insured cryptocurrency custody solutions, such as Cybavo.
Firms offering custody services store clients' funds in multi-signature hardware wallets to boost security. Users need to register with their preferred custodian, comply with KYC and AML guidelines, and send their crypto to wallets under the firm’s control to interact with these services.