Custodian

A custodian is a regulated financial institution that holds digital assets on behalf of clients. In crypto, custodians use cold storage, multi-signature controls, and SOC 2 audits to protect assets. They differ from exchanges (where you simply leave crypto in an account) because they're held to fiduciary standards under U.S. financial regulations.

For crypto-backed lending, qualified custodians matter because the borrower's pledged collateral has to be held somewhere both parties trust. Pooling client crypto with operating funds — the practice that brought down FTX — is not allowed at a qualified custodian.

Why it matters for Milo customers

Milo holds pledged crypto collateral exclusively at Coinbase and BitGo — both qualified custodians regulated under U.S. trust company charters, SOC 2 Type II audited, and insured. Your Bitcoin or Ethereum sits in a segregated account in your name, never in Milo's general pool.

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