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What is a custodian bank?
A custodian bank is a financial institution that holds customers' securities for safekeeping to prevent them from being stolen or lost. The custodian may hold stocks, bonds, or other assets in electronic or physical form on behalf of its customers. Often, a custodian bank does more than provide asset protection.Can a custodian be an individual?
Yes, a custodian can be an individual. Other types of firms, such as a law firm or an accounting firm, can be custodians, as well. Custodian banks play an important role in holding and protecting the financial assets owned by individuals and institutions.Is Robinhood moving from sub-custody to direct custody?
However, in May 2022, Robinhood announced that their users will be able to hold their own digital assets in a separate, stand-alone app. This signals that they’re moving away from sub-custody and towards a direct custody model, though it’s currently unknown how exactly the company plans to build direct custody.What is a Mutual Fund Custodian?
Mutual fund custodians are third party institutions that protect the securities in which mutual funds invest. A mutual fund custodian is often a custodian bank, but mutual fund custodians are focused on mutual fund company assets. The separation between mutual fund and mutual fund custodian is important.