Guide

Custodial vs non-custodial payments

The difference between custodial and non-custodial payments, with pros and cons for businesses accepting money online.

In short

Custodial means a third party holds your funds; non-custodial means funds settle directly to a wallet you control. Custodial processors can reserve or freeze balances; non-custodial settlement gives you immediate, sole control.

The trade-offs

Custodial services can be convenient and offer chargeback handling, but they hold your money and set the rules. Non-custodial settlement puts you in control and removes freeze/reserve risk, with the responsibility of managing your own wallet.

Part of our guide to non-custodial payments.

Related

Keep reading

Non-custodial payments

What non-custodial payments are, why they matter for businesses, and how settling to your own wallet removes freezes, reserves, and middlemen.

What is self-custody?

Self-custody means you hold the keys to your own wallet. Learn what it means for accepting payments, its benefits, and its responsibilities.

Stablecoin settlement to your own wallet

Settle every payment in stablecoins (USDC/USDT) directly to a wallet you control. No rolling reserves, no custody, no waiting on bank payouts.

The crypto payment gateway that also takes cards

Accept card and crypto payments through one gateway and get settled in stablecoins to your own wallet. Non-custodial, global, live in minutes.

Questions

Frequently asked questions

What does custodial mean?

A third party holds your funds and decides when to release them.

What does non-custodial mean?

Funds settle directly to a wallet you control; no one else holds them.

Which does Bitoshi use?

Non-custodial - stablecoins settle straight to your wallet.

Get paid by card. Keep it in your wallet.

Add your wallet, share a link or drop in the API, and you're accepting card payments that settle in stablecoins. Live in minutes.

Start free →See pricing