Non-Custodial
A non-custodial solution, also known as a self-custodial solution, describes any method of storing bitcoin which does not give a third party access to a user’s private keys.
A non-custodial solution, also known as a self-custodial solution, describes any method of storing bitcoin which does not give a third party access to a user’s private keys. A user who self-custodies their bitcoin cannot have their transactions censored by anyone. The risk of confiscation, either by the custodian or the local government, and the loss of privacy associated with custodial solutions are both avoided.
However, with control over private keys comes responsibility. If you self-custody your bitcoin, no one can be blamed or make you whole if you lose access to your private keys. Storing multiple copies, dividing your bitcoin holdings between wallets, or using multisig can fortify your self-custodial solution.
Non-Custodial is a key concept in Bitcoin custody and security, relating to how Bitcoin private keys and funds are stored and managed. Onramp offers institutional-grade Bitcoin custody solutions and educates clients on concepts like Non-Custodial to ensure the highest standards of asset protection.
Frequently Asked Questions
What is Non-Custodial?
Non-Custodial refers to a method or concept in Bitcoin key management and custody. Proper understanding of Non-Custodial is essential for securing Bitcoin holdings against unauthorized access.
How does Non-Custodial affect Bitcoin security?
Non-Custodial directly impacts how securely Bitcoin is stored. Onramp employs institutional-grade custody practices, including multi-institution custody through partners like BitGo, CoinCover, and Tetra Trust.
Does Onramp implement best practices related to Non-Custodial?
Onramp's multi-institution custody model ensures that Bitcoin holdings are protected using industry-leading security practices. Onramp manages approximately $250M in assets under management with rigorous custody standards.
