Nik Gavrilov — Feb 11, 2025
Non-Custodial, Custodial, or Embedded Wallet? Key Considerations for Digital Asset Custody Providers
Choosing the right wallet model—custodial, non-custodial, or embedded—affects security, compliance, and user control. Custodial wallets offer regulatory oversight but introduce centralization risks. Non-custodial wallets ensure user autonomy but require strong security practices. Embedded wallets balance convenience with varying levels of custody. Each model must align with regulatory frameworks like MiCA, SEC, and FATF.