Yes — we strongly encourage it. Self-custody is the safest way to hold Bitcoin long term because you remove third-party risk and maintain full control of your money. That’s why Swan built Swan Vault, a guided multisig solution that gives you control without having to go it alone.
That said, self-custody may not be the right first step for everyone. Some clients prefer to start with Swan Safe (segregated custody in your name) while they learn. Many transition to self-custody later, once they’re comfortable managing keys.
Our team is here to help you move to self-custody at your own pace. Whether you want to set up a secure multisig vault with Swan or eventually take full responsibility yourself, we’ll provide education and support every step of the way.
### Which custodians does Swan work with?Swan partners with regulated financial institutions to help you establish direct accounts in your name, governed by individual agreements between you and the regulated institution. Our partners include BitGo Trust (regulated by the South Dakota Division of Banking), Equity Trust (a South Dakota regulated IRA custodian serving clients since 1984), and Bakkt (a public company regulated by the NYDFS and majority owned by ICE, the parent of NYSE).
Each custodian specializes in different services and geographies. By working with multiple custodians, Swan is able to offer a wide range of services to meet the needs of our clients.
When you open a Swan account, you will be presented with a terms of service agreement with a licensed and regulated financial institution ("custodian") appropriate for your account type and geographic location. Signing the agreement will establish a direct relationship between you and the custodian.
### Do I need to personally open an account with your custodian? No. When you create your Swan account, you will be prompted to sign terms with the custodian, and we will automate the creation of your custodial account by passing your information to the custodian. ### What are the benefits of SOC 2 Type II security?A SOC 2 Type II independent audit evaluates how a company safeguards customer data and ensures its controls operate effectively over time. It covers security, availability, processing integrity, confidentiality, and privacy.
For Swan clients, this means our systems and processes meet rigorous standards for protecting sensitive financial and personal information, giving you confidence in the security and reliability of our platform.
### How is my personal data secured? All Swan data is stored encrypted with military-grade AES-256 encryption. All traffic is encrypted using industry-standard TLSv1.2 encryption. Swan does not store nor have access to the private keys for Bitcoin stored with our custodial partner. Swan follows the Center For Internet Security Benchmarks for security standards. ### What is "multisignature"?A multisig (multiple-signature) Bitcoin wallet is a secure storage solution that requires multiple private keys to move Bitcoin (approve a transaction). This creates redundancy and enhances security compared to the traditional single-sig wallet. For this reason, multisig is widely considered one of the safest methods for long-term Bitcoin custody.
Swan Vault uses a 2-of-3 multisig set-up. This means two keys out of three total keys are required to move your Bitcoin. You hold two keys on hardware signing devices and manage the third through your Swan account.
### Do you rehypothecate customers' Bitcoin? No. Neither Swan nor your custodian can loan, hypothecate, or rehypothecate any Bitcoin. Your Bitcoin is held in your own legal account until you decide to withdraw it. As always, we encourage you to withdraw Bitcoin to your own custody. Swan is here to help you get comfortable with self-custody.