What is Custody?
Explains the concept of custody
Asset-backed tokens usually involve trust in the institution(s) holding the asset; this seemingly goes against cryptocurrencies’ ethos, which seeks to minimize the need for trust in operations. Since BTC Proxy is a bridge between Traditional Finance and Decentralized Finance it must be able to operate within both ecosystems.
Custodians involve a regulated 3rd party that is entrusted to hold assets. Our selection for custodians involve a level of integration and requires API access which can accept instructions from the protocol.
BTC Proxy does not handle the assets. When users interact with BTCpx.io they are essentially transacting with the custodian.