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When offering bearer shares through Rime, you need to decide who manages your customers’ tokenized shares – you or your customers themselves. This is the custody decision. With bearer shares, you choose between two models: hosted custody (you manage holdings) or self-custody (customers manage their own holdings).

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Hosted Custody

You manage your customers’ holdings You hold and manage tokenized shares on behalf of your customers, just like traditional custody. When a customer invests, shares are held in an account you control. Your customers see their position in your platform, and you handle all the infrastructure behind the scenes. When this makes sense:
  • Your customers are retail investors who expect you to handle everything
  • You already provide custody services for other assets
  • Your regulatory framework requires you to maintain custody
  • You want full control over the customer experience
Business implications:
  • You’re responsible for securing customer assets
  • Your existing custody and compliance frameworks apply
  • Customers get a familiar, traditional experience
We are happy to assist you with integrating a managed wallet solution into your platform.

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Self-Custody

Your customers manage their own holdings Each customer controls their own tokenized shares directly. Shares are delivered to wallets they control. You facilitate the setup but don’t hold customer assets – similar to customers holding physical stock certificates. When this makes sense:
  • Your customers want direct control over their investments
  • You’re serving sophisticated or high-net-worth investors
  • Your business model emphasizes transparency and investor autonomy
Business implications:
  • Customers need to set up their own accounts (through user-friendly apps)
  • You provide guidance but don’t hold assets
  • Appeals to investors who prefer direct control

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Offering Both Models

You may want to start with hosted custody for most customers and offer self-custody as an option for those who want it. You’re not limited to one approach. Typical approach:
  1. Default to hosted custody for retail investors
  2. Offer self-custody for customers who request it
  3. Let customers choose based on their preferences
  4. Allow transitions between models as needs change

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Compliance

Regardless of custody model, all accounts must be approved before receiving shares to ensure regulatory compliance. Approval process:
  1. Customer completes KYC/AML verification through your platform
  2. You create an account via Rime’s API
  3. Rime approves that account for receiving shares
  4. Shares can now be delivered to that customer