What does Financial Self-Sovereignty mean with Monflo?

Financial self-sovereignty means having control over your financial assets.

With Monflo, you authorize us to execute transactions on your behalf based on your instructions, similar to traditional financial institutions' operations.

Monflo is committed to self-sovereignty, giving you full control over your capital. To balance user experience, we initially offer custodial accounts, which provide ease of use and security. However, self-custodial accounts might be added later, allowing you to choose whether to manage your private keys.

Custodial and non-custodial wallets differ primarily in who controls the private keys to your cryptocurrency. 

With a custodial wallet, a third party, such as a Monflo manages your private keys for you. This makes it easier for beginners, as the provider handles security and offers recovery options if you lose access. That also means you’re placing trust in a provider to manage your funds securely, which can be convenient and safe when working with a reliable partner, like Monflo.

In contrast, a non-custodial wallet gives you full control over your private keys and, therefore, your crypto. Examples include MetaMask, Trust Wallet, and hardware wallets like Ledger. These wallets offer greater privacy and security, but they also place the responsibility entirely on you. If you lose your private key or recovery phrase, there’s no way to regain access to your funds.