A trading service that controls customer keys and records claims in its own ledger.
Custodial exchange is best understood as part of a system rather than as an isolated definition. Its related coordinates show the mechanisms, incentives and historical records that give the term practical meaning.
Custodial exchange describes how participants value, trade or obtain exposure to bitcoin. Market behavior can affect adoption and mining economics, but it does not rewrite consensus rules. Price evidence and protocol evidence answer different questions.
Understanding Custodial exchange helps distinguish a verifiable Bitcoin mechanism or historical record from slogans, products and market narratives.
For the clearest picture, read this entry together with Self-custody, Know Your Customer, Proof of reserves, Counterparty risk. The reverse links also lead from Know Your Customer, Self-custody, Dollar-cost averaging, Spot Bitcoin ETP.
Linked to related atlas coordinates
Grounded in a source record
Explains function and trade-offs
Part of the open Bitcoin knowledge graph