# Custodial 1. A custodial set-up is one where a user’s [[Private Key|private keys]] are held by the service provider himself. In some cases [[Cryptocurrency Exchange|crypto exchanges]]. 2. A custodial [[wallet]] is a type of [[Crypto (cryptocurrency)]] wallet where a third party holds a user's [[private key]]s and cryptocurrency funds. With a custodial wallet, a user must trust a third party to secure their funds and return them upon request. The most common custodial wallets are web-based exchange wallets.