Custodial vs non-custodial, in plain terms
- Custodial (a bank, a broker, most dollar accounts): the institution holds the funds. It can freeze, block or limit your balance, and you depend on it to move anything.
- Non-custodial (a self-custody wallet): the balance sits in a wallet that answers to you. Nobody can move it without your authorization.
How the Ruvo wallet works
With Ruvo your dollar balance is held as USDC and USDT in a wallet you control, not in a custodial account we can freeze. You sign in with your email and a passkey, and recovery is built in, so self-custody does not mean writing a seed phrase on paper and hoping you never lose it. You get the control of crypto with the experience of an app. Receiving digital dollars is free, holding them costs nothing, and there is 0% IOF on every operation.
Why self-custody matters for Brazilians
- Your dollar balance cannot be frozen or swept by a third party.
- You hold value in dollars, away from swings in the real.
- You move money on your schedule, not the bank’s business hours.
- You can receive from, and send to, any external wallet, not just accounts inside one app.
Receive and send from any wallet
A Ruvo wallet is open to the whole stablecoin ecosystem. You can receive digital dollars from any wallet or exchange for free, and send out to any external wallet for 0.9% as an individual or 0.4% as a business, always with 0% IOF. Transfers between Ruvo accounts are free. The same balance also powers cross-border remittances that settle in seconds.
What you are responsible for
Self-custody gives you control, and control comes with care. Keep your login and device secure, confirm wallet addresses before sending, and treat recovery seriously. We cover the practical steps in the crypto wallet security guide.
When a custodial wallet makes more sense
Self-custody is not always the right choice. If you are new to crypto, unfamiliar with network addresses, or primarily using your digital dollar balance for spending and conversion rather than long-term storage, a custodial setup like Ruvo is more practical and carries less risk of user error. The key advantages of custodial wallets are account recovery options, simpler onboarding, and no risk of losing access through a lost seed phrase. Non-custodial wallets become more useful when you want to move assets across DeFi protocols, interact with chains beyond what the provider supports, or store large balances long-term outside any third-party platform.
| Feature | Custodial account | Non-custodial wallet |
|---|---|---|
| Who holds the funds | Bank or institution | You — self-custody |
| Freeze risk | Yes — account can be blocked | No — only you can move your balance |
| IOF on transfers | Varies by operation | 0% IOF |
| Recovery if you lose access | Institution resets your account | Built-in recovery via Ruvo |
| Send to external wallet | Limited or not available | Any wallet, any supported network |
| Seed phrase required | No | No — Ruvo handles it |
Sources
- Criptoativos — informações e regulamentação, Banco Central do Brasil
- USDC Reserve Transparency Reports, Circle
Updated on October 7, 2026
This content is for information only and is not financial or tax advice. How we write
