Trustee
A Trustee is an individual or organization responsible for holding and managing assets on behalf of another party. In the context of cryptocurrency, a Trustee may be responsible for safeguarding digital currency holdings, providing custody services, verifying transactions and maintaining records.
Trustees are typically appointed by either the issuer of a cryptocurrency (such as in the case of Bitcoin), or by users who wish to invest in specific coins or tokens. The role of a Trustee can vary greatly depending upon their level of involvement with the asset being held. For example, some custodians simply store the funds securely; whereas others also manage trading activities and provide additional services such as accounting support.
The most important element that sets a Trustee apart from other service providers is its fiduciary responsibility: A legally binding obligation to act in good faith with due diligence and loyalty towards those they serve – namely investors/holders who entrust them with valuable digital currencies. As such, it’s essential that crypto-asset holders do their due diligence when selecting a Trustee; researching areas such as reputation, financial standing and years in business before appointing one to hold their digital currency investments secure over time.
