Non-custodial
A wallet or service where you, not a company, control the private keys and therefore the funds.
Non-custodial means you keep control of your own private keys. A non-custodial wallet stores keys on your device, and only you can sign transactions. A custodial service, such as a typical exchange account, holds the keys for you and shows you a balance in its database.
The difference matters when things go wrong. If a custodial exchange is hacked, freezes withdrawals or goes bankrupt, customers can lose access to their funds, as several high-profile collapses have shown. With a non-custodial wallet, no company can freeze or lose your coins, but you are fully responsible for your seed phrase and backups.
Non-custodial instant swaps follow the same idea: you send coins from your own wallet, the provider converts them, and the result goes straight to an address you control. The provider holds your funds only for the duration of the swap, and you never keep a balance on the service.
