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Custodial vs Non-Custodial Payment Gateways
Understanding the key difference in how your crypto funds are handled.
Custodial gateways (Coinbase Commerce, BitPay, NOWPayments) hold your funds in their wallets. Non-custodial gateways (Zateway) route payments directly to your wallet. The choice affects your security, control, and regulatory exposure.
Risks of Custodial Gateways
Account freezes (common with Coinbase Commerce), withdrawal delays, counterparty bankruptcy risk (remember FTX), regulatory seizures, and loss of access. If the gateway goes down, your funds are inaccessible.
Benefits of Non-Custodial
Zero counterparty risk. Instant access to funds. No account freezes. No withdrawal limits. Full control. The smart contract routes payments directly — even if Zateway's servers went offline, your funds are already in your wallet.