Custodial asset management is the service of storing and protecting cryptocurrency assets, allowing the owner to hold, move, and protect their digital assets via a third‐party provider.
Self-custody of digital assets, such as using a hardware wallet, allows the owner of a cryptocurrency to hold the keys to their digital assets in a device and to have sole control over them—meaning that only the owner can approve transactions, call rewards, or sign blocks. Custodial solutions are those in which a third-party provider manages the asset owner’s private/public key pair for them, along with managing the asset’s storage, security, and approving and signing transactions on behalf of the owner.
Custodial solutions require the owner to have a certain level of trust in the custody provider, as the provider holds full access to the owner’s assets. However, custody provides more options for large‐scale asset management, enterprise‐level security options, and certain double‐signing protections such as HSM. Conversely, non‐custodial solutions do not require as much trust as the owner of the asset is the sole party in control of the asset’s keys, but can lead to complications if the owner loses their own credentials, wants to take execute bulk or remote actions, or wants someone else to provide their overall asset management.
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Bison Trails is a blockchain infrastructure platform-as-a-service (PaaS) company based in New York City. We built a platform for anyone who wants to participate in 21 new chains effortlessly.
We also make it easy for anyone building Web 3.0 applications to connect to blockchain data from 32 protocols with Query & Transact (QT). Our goal is for the entire blockchain ecosystem to flourish by providing robust infrastructure for the pioneers of tomorrow.
In January, 2021, we announced Bison Trails joined Coinbase to accelerate our mission to provide easy-to-use blockchain infrastructure, now as a standalone product line. The Bison Trails platform will continue to support our customers. With Coinbase’s backing, we will enhance our infrastructure platform and make it even easier to participate in decentralized networks and build applications that connect to blockchain data.