svrgnty.comCollaborative custody for peace of mind.
Collaborative custody for peace of mind, but at a cost. It is essential to carefully consider the trade-offs when deciding whether collaborative custody is the right choice for you.
Collaborative custody is a multi-signature wallet arrangement where you retain control of the majority of the keys, while a third party, e.g. a custodial service, usually manages one of the keys. This setup offers peace of mind, knowing a key is secure, but it entails trade-offs.
- KYC: One such compromise is the requirement for KYC (Know Your Customer) verification, which involves disclosing your identity to the third party.
- Visibility: Another trade-off is the visibility into your wallet given to the third party. Though they cannot access your funds, they can see the transactions and balance of the wallet.
