Custodial wallets have become the new ‘bank’ for those taking their first steps in the crypto economy. They eliminate the complexity of private keys and allow users to focus on what matters most: owning and transferring without barriers. But this simplicity comes at a price: users cease to be the sole owners of their funds, which increases the importance of trust.
The top five custodial wallets show how different teams are tackling this challenge.
Trustee Plus: Wallet, Card, IBAN, P2P
A cryptocurrency service for storing and managing cryptocurrencies and fiat assets, Trustee Plus was launched in 2022 and currently serves approximately 1 million customers.
Trustee Plus is a ‘classic’ wallet, but of the custodial type. Its main idea is to make interaction with the blockchain fast and convenient on favourable terms:
- •0% on transfers between user balances, and 0% on stablecoin exchanges.
- •Instant transactions, transfers by phone number and IBAN, a built-in P2P system, and an in-app market data aggregator for investment decisions.
- •0% on all cryptocard payments, which works at millions of locations worldwide.
In the Incrypted ranking, the largest crypto media in Eastern Europe, the Trustee card took first place out of the 12 best cards in terms of accessibility and conditions.
The service guarantees the protection of assets and data through PIN-based encryption of the connection between the device and the server, as specified by the customer in the settings, biometrics, and two-factor authentication using Google and email.
The Trustee Plus team includes the developers of another popular solution, the non-custodial Trustee Wallet. This team is led by CEO Vadim Grusha, a winner of the Consensys hackathon in New York, which served as the starting point for the implementation of the Plus concept.
Binance
Binance is not a separate wallet but is integrated into the world's largest cryptocurrency exchange. It is currently the most popular entry point into the market for novice traders and investors.
In terms of trust, Binance has chosen the path of ‘regulated centralised trust’. Users do not own the keys; control lies entirely with the exchange. This is compensated by a level of transparency and a protective infrastructure similar to that of a bank. Binance uses multi-layered storage (cold + hot), has a Secure Asset Fund for Users insurance fund to compensate for losses in emergencies, and regularly undergoes external Proof-of-Reserves audits.
Bybit
The ByBit wallet is integrated into the exchange's ecosystem, which is currently the second most popular custodial solution globally, with over 70 million users in 2025.
Bybit emphasizes independent reserve audits, with results that are publicly available and updated regularly. Additionally, the exchange utilizes cold storage, where most funds are kept offline and access is distributed among several trusted parties. However, it is worth noting that in 2025, ByBit fell victim to a significant hack, losing $1.4 billion.
Uphold
Uphold is a digital platform for trading over 250 assets. It currently serves clients in more than 140 countries, allowing them to exchange not only cryptocurrencies and fiat currencies but also precious metals such as gold and silver. The main level of trust in the wallet is its transaction transparency: it publishes assets and liabilities every 30 seconds, allowing users to check the platform's reserves in real time.
Bitpanda
Bitpanda is a trading platform from Austria, founded in 2014. It supports more than 3,000 digital assets, including cryptocurrencies, precious metals, stocks, ETFs, commodities, and cryptocurrency indices. Today, it has approximately 7 million customers.
It offers two types of accounts: Broker, for beginners, allowing them to buy, sell, and stake assets; and Fusion, for professional traders, offering advanced features such as order book aggregation from the most liquid exchanges. BitPanda is regulated in accordance with European laws, holding licenses such as BaFin for Germany and MiCAR from the Austrian Financial Market Authority.
Custodial wallets demonstrate that the crypto world is not divided into ‘right’ and ‘wrong’ ways of storing assets. It all comes down to personal choice: between trust in the platform or absolute independence. For millions of newcomers, convenience is the key to taking their first step into the crypto world, and modern solutions, such as new-generation custodial wallets, allow them to take that step safely.