What it means
A wallet where a company holds the keys and your money for you, the way an exchange or a bank app does.
You see a balance, but the company controls it. If it freezes your account, fails or gets hacked, you depend on it to get your money back.
How it works
Defied is the opposite: a non-custodial wallet. We never hold your money and we can't move it.
Related terms
| Term | What it means |
|---|---|
| Non-custodial wallet | A wallet where you, not a company, control the key, so only you can move what's in it. |
| Self-custody | Holding your money yourself, in a wallet only you control, instead of trusting a bank or exchange to hold it. |
| Private key | The secret that proves a wallet is yours and signs every payment from it. Whoever has it controls the wallet. |
This glossary explains terms in general. It isn't investment, tax or legal advice.