Crypto custody
Crypto custody is the professional, regulated safekeeping of the keys to digital assets by a licensed provider.
Explained simply
Anyone holding coins themselves carries responsibility for the private key. Those who do not want that hand the keys to a custodian. In Germany this has been a licensed business supervised by BaFin since 2020.
Custodians usually store keys "cold", i.e. on devices without internet connection, in secured rooms, under a four-eyes principle. Client assets must be separated from the custodian's own assets.
Funds and ETPs investing in digital assets are required to use such custodians. The investor never comes into contact with keys.
From the familiar world
The custodian bank for securities: you do not keep your shares at home; a licensed bank holds them in trust and separately from its own assets. Crypto custody is the same for digital assets.
An example
Several German banks and specialised providers hold a BaFin licence for crypto custody. Among other things they hold the assets of funds and exchange-traded crypto products.
Why it matters
The custody question is the most important one for most clients: "Who looks after it?" The answer "a BaFin-supervised custodian, separate from its own assets" is at the core of every serious product structure.
To pass on
„Crypto custody is the custodian bank for digital assets: regulated, held separately, and you never have to keep a key yourself.“
The content of this wiki is for general information and educational purposes only. It does not constitute investment advice, an investment recommendation or tax or legal advice. Digital assets are subject to strong price fluctuations and can lead to losses up to a total loss. Content as of 2026, no guarantee of completeness or timeliness.
21 Oaks Capital GmbH acts as a tied agent exclusively for the account and under the liability of AHP Capital Management GmbH, Weißfrauenstraße 12-16, 60311 Frankfurt am Main, Germany. This wiki is a general information service provided by 21 Oaks Capital GmbH. Its content does not constitute individual investment advice and is not a recommendation by AHP Capital Management GmbH. 21 Oaks Capital GmbH, its affiliated companies, the funds it advises or its employees may hold positions in assets explained in this wiki. The explanations are independent of this; the disclosure is made for reasons of transparency.