Common example
Crypto kept on a centralized exchange account is usually custodial because the platform controls the wallet infrastructure.
Tradeoff
Custodial wallets are convenient, but users depend on the platform's security, access rules and withdrawal policies.
Related pages
Compare non-custodial wallets and exchanges.
How to use this term
Use Custodial wallet as a practical checkpoint when comparing exchanges, wallets, cards or on-chain tools.
What to check
Check how the term appears in fees, limits, account rules, wallet flows and risk notes before making a platform decision.