What Is the Difference Between Custodial and Non-Custodial (Private) Addresses?

Modified on Thu, 25 Sep at 1:46 AM

When adding a blockchain address to your StraitsX account, you’ll need to indicate whether it is custodial or non-custodial (private). Understanding the difference helps ensure your address can be verified smoothly.

Custodial Addresses

Managed by a third-party platform such as an exchange or wallet service (e.g., Binance, Bybit, Crypto.com, Gemini, Kraken, Coinbase, etc.).
The platform holds the private keys — you access the funds through your account with them.
Verification on StraitsX: You must select the platform name from the dropdown list during whitelisting. The name on the custodial account must match your StraitsX account.

Non-Custodial (Private) Addresses

Controlled directly by you via a wallet app or hardware wallet (e.g., MetaMask, Trust Wallet, Ledger, Coinbase Wallet, Crypto.com OnChain, Binance Web3 Wallet, etc.).
You are the only one with access to the private keys — meaning full control, but also full responsibility for security.
Verification on StraitsX: You’ll need to prove ownership by signing a verification message (e.g., via MetaMask or WalletConnect) or by making a small deposit from the wallet.

Custodial Address	Non-Custodial (Private) Address
Managed by exchanges or wallet services	Controlled directly by the user
The platform holds the private keys	User holds the private keys
Examples: Binance, Bybit, Gemini, Crypto.com	Examples: MetaMask, Trust Wallet, Ledger
Verified on StraitsX by selecting the platform	Verified on StraitsX via signature or deposit

Why This Matters

Custodial address: Convenient, but it depends on the platform’s safeguards and policies.
Non-custodial address: More control, but you are responsible for managing private keys securely.