# The Importance of Having a Custodian - FINX Global - Medium

**Published by:** [FINX GLOBAL](https://paragraph.com/@finx-global/)
**Published on:** 2022-10-12
**URL:** https://paragraph.com/@finx-global/the-importance-of-having-a-custodian-finx-global-medium

## Content

Having a Custodian is becoming increasingly important in the Cryptocurrency market. However, before we try to understand why having one is important, let’s dive into what a Custodian is and what it does. What is a Custodian? The easiest way to understand what a Custodian is, is by understanding what it does. Essentially, a Custodian acts like a bank. It stores your money for safekeeping to minimise the risk of theft or losses. In the world of cryptocurrency, a Custodian is a bank that safely keeps all your crypto-assets, typically used by Blockchain organisations as a means of giving their users an extra layer of assurance that their crypto assets are being safely held by an established bank. Why is a Custodian needed? The services of a Custodian are typically aimed at organisations or institutional investors who would typically hold or store a lot of digital assets. There are 2 main reasons why a qualified Custodian would be needed: a. To save organisation/institutional investors from the technical complexity of creating a safe space to store their and their client's digital assets. b. In the event that a new project is created, having a Custodian assures potential investors/buyers that their assets are being guarded by a qualified institute — preventing the risk of loss that could come in the form of a project being liquidated. Additionally, According to SEC regulation under the Dodd Frank Act, institutional investors that have customer assets worth more $150,000 are required to store the holdings with a “qualified custodian.” Will FINX have a Custodian? The short answer is, yes. FINX will have several qualified Custodians to manage their assets and the assets of their clients. Currently, FINX is still studying several prominent qualified custodians to decide on the best ones for the project and the end-users. Rest assured that, once we’ve decided on the best Custodian for our project, we will make an official announcement to inform the members of our community. About FINX Global FINX is the future of finance that aims to promote digital assets payments into the financial system, enabling seamless digital payments that are accepted globally. As a result, FINX will put an end to the intensive process of crypto to fiat conversion by providing a platform to the global audience that enables anyone from anywhere across the world to seamlessly transact and participate in the world of digital assets conveniently and faster than before. This vision will therefore enable the world to better understand cryptocurrencies and digital assets, fueling mass adoption. Social Media & Communities Website: https://finx.global/ Discord: https://discord.gg/ finxglobalTwitter: https://twitter.com/FINXSupport

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