Custody Models Explained — Who Actually Holds Your Collectible
“Custody” is the least glamorous and most important word in NFT collecting: it answers whose hands physically or technically control the thing you own. Our registry records a custody_model for every platform — this explainer defines what each model means for you in practice.
The three models
| Model | Who holds it | Your exposure | Registry examples |
|---|---|---|---|
| Platform custody | The platform holds both the token account and any underlying item | Platform solvency + honesty; you typically can’t move the token out | NBA Top Shot (Dapper custodial account) |
| Vault (“phygital”) | A physical item sits in a named vault; the token represents it | Vault operator + platform redemption honour | Courtyard (Brink’s), Phygitals, Collector Crypt |
| Self-custody | Token lives in your wallet; you hold the keys | Your own key management — lose the keys, lose the asset | Sorare (cards transferable on-chain), Parallel TCG |
Most real platforms are hybrid: a vault-backed marketplace where redeemed items leave custody entirely, or a custodial account with a self-custody export that is announced but not yet shipped. Where a platform sits on this line is a dated fact — custody models change (VeVe, for example, completed its Collect Chain migration in April 2026 with self-custody announced as a still-pending Phase 2 as of September 2026) — which is exactly why our registry re-verifies the field on a fixed cadence.
What each model means when things go wrong
- Platform custody + shutdown: the classic failure. If the company holds your tokens and dies, you may hold a claim, not an asset. See what happens when a platform shuts down.
- Vault + shutdown: better, not bulletproof. A third-party vault (e.g. a Brink’s facility) holding your titled property gives you a real claim on the item — but only if the platform documented legal title passing to you at purchase. If the paperwork says the platform owns it, the vault protects them.
- Self-custody + shutdown: the asset survives; the utility may not. An on-chain card outlives the company, but in-game utility, licensing, and marketplace liquidity usually don’t. The token persists; the collectible it represented may not.
The four questions to ask before buying
- Who physically holds the item or keys — named entity, named location?
- Is there a documented exit — redemption, export, withdrawal — and what does it cost?
- Does the platform’s own documentation say you hold legal title?
- What happens to the asset if this company stops operating — and has the platform answered that in writing?
If a platform can’t answer these from its own docs, that’s a finding. The registry records the answers we could verify; “unverified” is an answer too.
Bottom line: custody isn’t a technicality — it decides what you actually have when a platform changes hands, changes chains, or closes. Check the model before you buy; our provenance explainer has the full verification checklist, and every registry profile states the custody model explicitly.