Investing Basics
Custodian
The institution that holds assets for an investor or account.
Also called: asset custodian
What it means
A custodian is the financial institution responsible for holding securities or other assets on behalf of an investor, retirement plan, or fund. The custodian helps with safekeeping, recordkeeping, and sometimes reporting.
Why it matters
It helps users understand where assets are actually held and why different firms may have different roles in one account.