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Who Holds the Keys Matters

When your business uses stablecoins, custody refers to how and where your digital assets are stored—and who controls access to them. Choosing the right custody method is critical for security, compliance, and operational risk.

1. Self-Custody

Definition: You control your own private keys using a software wallet (like MetaMask) or hardware device (like Ledger). No third party is involved.

Pros:

• Full control of funds
• Instant access anytime
• No intermediary risk

Cons:

• High personal responsibility
• Loss of private key = total loss of funds
• May not meet regulatory standards for fiduciaries or fund managers

Legal Implications:

• Treated as bearer assets (like cash)
• Loss or theft is not recoverable
• May raise concerns for institutional or fiduciary accounts (e.g., commingling of funds)