Custodian | B2B Finance Glossary
Aug 24, 2023 by Zazil Martinez
What is a Custodian? A custodian is a financial institution that holds assets for customers for safekeeping and to minimize the risk of theft or loss. Custodians can hold funds, stocks, bonds, cryptocurrency, and other digital assets; all of these different types of assets are typically held at one of the custodian’s premises, a sub-custodian facility, or an outside depository. On top of that, custodians can manage customers’ accounts and transactions, handle settlements, and ensure that all financial activity complies with the IRS and regulators. All of these services are provided by custodians for a fee. Bank custodians are regulated by the Office of the Comptroller of the Currency (OCC).
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