Self-Custody
Quick Answer
Self-custody means holding your own private keys with sole control over your crypto — no third party can freeze or seize funds. Core to blockchain's 'not your keys, not your crypto' principle.
Full Definition
Self-custody means the user holds their own private keys and has sole control over their cryptocurrency — no third party can access, freeze, or seize the funds. Self-custody wallets include hardware wallets, browser extensions (MetaMask), and mobile apps with local key storage. The principle is fundamental to blockchain's value proposition: 'not your keys, not your crypto.' Self-custodial payment flows let customers pay directly from wallets they fully control.
Related Terms
Same-Day Settlement
Same-day settlement means merchants receive fiat in their bank account on the same day a crypto payment is made — significantly faster than card payments' 2-5 day settlement.
Sanctions Screening
Sanctions screening checks wallet addresses and entities against OFAC, EU, and UN sanctions lists to prevent prohibited transactions — a legal obligation for all payment providers.
SDK (Software Development Kit)
An SDK is a collection of pre-built code libraries that simplifies payment integration — typically a few lines of code to add crypto payment acceptance to any website or app.
Settlement
Settlement is the final, irrevocable transfer of funds completing a transaction. Crypto settlement occurs in seconds to minutes versus 1-5 business days for traditional payments.
Slippage
Slippage is the difference between expected and actual trade execution price. In crypto payments, DEX aggregators and tolerance settings minimise slippage during settlement conversion.
Smart Contract
A smart contract is a self-executing program on blockchain that enforces agreement terms automatically — used in payments for escrow, settlement, revenue splitting, and conditional payments.