Introducing flexible custody: better custody models for global businesses
Henri Stern
|Dec 18, 2025
As stablecoins become programmable money for users around the world, wallets have become the new account system for storing and moving value. At Privy, we help unlock this transition, by giving developers one simple API you can use to securely spin up powerful wallets, sign transactions, and integrate any onchain system.
Today, we’re excited to announce that Privy now offers custodial wallet support through its API, working with select custody partners starting with Bridge. These are custodial accounts through supported custody partners. This means any developer can launch custodial and self-custodial wallets side-by-side as part of a single build.
Offering flexible custody systems reflects the real operational needs businesses have operating at global scale: different users, different markets, different requirements. Specifically, Privy developers can now
provision wallets with a third-party custodian securely holding assets securely.
configure custody model on a per-wallet basis choosing the configuration that meets your regulatory, operational, and product requirements.
adapt a wallet’s custody model over time to enable self-custody or enlist a custodian to hold user funds.
This flexible custody approach gives companies a dynamic, future-proof account system, and one that lets them serve any user, anywhere in the world, without rebuilding their product or compromising on UX.
Enabling secure self-custody around the world is core to our mission and foundational to what makes programmable assets on decentralized systems so powerful. We are as committed to this future as we have ever been.
Just the same, we recognize global businesses have varied needs and this launch will help unleash stablecoin usage across the world enabling many more businesses to adopt this technology.
Providing optionality on custody
For global enterprises, balancing user experience, security, and regulatory compliance is a constant challenge. For example, enterprises looking to give users simple, compliant USD access may want a regulated custodian to manage assets on behalf of their users. Similarly, as they look to expand their operations across dozens of jurisdictions, they may choose to leverage non-custodial wallets for scalable, frictionless money movement. Enabling customers to plug in with existing custodians (beyond self-custody and custodying assets themselves) unlocks a wider range of business possibilities!
Privy’s system delivers flexible custody so developers can easily custody assets, work with third-party custodians or give users direct self-custody, all with one simple API.
Privy’s flexible custody: Three powerful models
Today, Privy’s embedded wallet system enables businesses to spin up user wallets, securely manage their assets and treasury, as well as manage onchain automations for their product – developers’ needs vary widely across these use cases. With flexible approaches to custody, Privy enables developers to choose how they would like to manage the control of user assets and associated compliance obligations.
Self-custodial (or non-custodial) wallets
Self-custodial (or non-custodial) wallets unlock powerful experiences for users globally. Users are in full control of their assets, and the product serving the wallets simply offers a UI through which users can access and manage their own funds.
Users have full control over the onchain systems they interact with and how they spend, save and earn, all through a product interface they already know and love.
Developer-custody wallets
Developer-custody wallets allow developers to manage their own assets through an omnibus account or per-user wallets. This is widely used by companies leveraging Privy for treasury management or already set up to custody assets on behalf of their users.
Cross border money movement companies are using Privy's wallet infra to orchestrate onchain money movement flows. They need granular control over the flow of funds, and policies/controls to secure systems across multiple user admins.
Custodial wallets
Custodial wallets enable developers to work with a third-party custodian directly through Privy systems. The custodian (e.g., Bridge) holds and controls the user’s assets on their behalf while the user interacts with the custodian directly through the product they are using via Privy infrastructure.
This unlocks massive opportunities for businesses operating across geos with differing regulatory needs. Developers can leverage the institutional compliance of the right custodian without needing to operationalize their own licenses. This is especially useful for companies offering global payroll, payouts, cross-border money movement, and more.
Across these paradigms, Privy delivers a consistent developer experience to future proof the next generation of fintechs. This means you can run your business globally, working with the right partners across the board across custody, on and off ramps, card issuance, yield, and more.
Rigid custody models and one-way doors have held back enterprise adoption of onchain products. Today, Privy enables you to build confidently with a system that scales to meet your needs. We’re building this foundation in close partnership with teams changing their industries.
If you’d like early access, head to https://www.privy.io/flexible-custody. We’re excited to work with you.
Onward!
