In the context of cryptocurrencies and blockchain technology, custodial services refer to the practices by which a third-party service provider takes custody of a client’s digital assets. This service includes securely storing private keys, executing transactions on behalf of clients, and managing the overall cybersecurity of the assets. Custodial services can be critical for institutional investors or individuals who may not have the resources or expertise to manage their own digital assets. Examples include exchanges and regulated financial institutions that offer asset custody solutions.