Bank Accounts vs Self-Custodian Wallets: Understanding Control, Access and Responsibility

Shipfinex wallet activation is approaching, and before you activate it, it’s important to understand how asset control works and how a self-custodial wallet differs from banking systems most people are familiar with.

This note is not about what is “better” or “worse.” It is about how different models handle control, access, and responsibility.

Let’s start with something familiar.

The Bank Account Model: Centralised & Custodial

When you deposit money into a bank account, it feels like your money is “stored” at the bank.In practice, it works slightly differently.

From an accounting perspective, a bank balance is recorded as a liability of the bank. In simple terms, you hold a claim on the bank, not physical cash set aside for you. The bank manages those funds within a regulated framework and allows you access through its systems.

This is known as a centralised and custodial model:

• The banking institution holds and manages the assets

• Access, recovery, and restrictions are handled by the institution

• You rely on the intermediary’s processes and controls

This model is widely used, regulated, and works well in most situations.The trade-off is that direct control sits with the intermediary, not the account holder i.e. you the customer.

Events like the 2023 Silicon Valley Bank resolution highlighted this distinction. While insured deposits were ultimately protected, access was temporarily dependent on regulatory and institutional processes rather than direct customer control.

The Shipfinex Wallet Model: Self-Custodial Control

The Shipfinex wallet follows a different architecture.

Instead of assets being held and controlled by an intermediary, you authorize transfers directly from their wallet using wallet credentials. Shipfinex provides the platform and infrastructure, but does not initiate transactions on behalf of customers.

In practical terms:

• Maritime Asset Tokens (MATs) are recorded on a blockchain ledger

• Transfer authorization is controlled by the wallet holder

• Shipfinex cannot move assets without customer authorisation

This is referred to as a self-custodial model. It changes who controls access, not what the asset represents.

What This Changes (and What It Doesn’t)

1. Reduced reliance on a custodial intermediary

Because your assets are not held by Shipfinex, customers are less dependent on an intermediary for routine access or transfers. Control over your assets is exercised directly via the wallet on your command.

This does not remove market risk, asset risk, or regulatory obligations.

It changes the custody and control model only.

2. Direct initiation of transfers

Transactions are initiated by the customer and executed according to predefined rules. This removes manual processing steps, but transfers remain subject to:

• smart-contract conditions

• compliance requirements

• network availability

3. Transparent verification

Wallet addresses and token holdings can be independently verified on the blockchain ledger. This provides transparency into holdings without revealing personal identity. Legal rights and obligations remain defined by the underlying offering documents.

The Responsibility Trade-Off

Here's what we need you to understand: self-custody gives you power, but it also gives you responsibility. Banks offer account recovery if you forget your password. They have customer service departments that can reset credentials. That safety net exists because they control the underlying assets.

With self-custodial wallets, there's no password reset button. If you lose your security credentials, there's no way for Shipfinex or anyone else to recover your wallet. The cryptographic math doesn't care who you are or whether you can prove your identity. Without the keys, the assets are permanently inaccessible. Additionally, Shipfinex account can be reset but our self-custodian wallets are different. To access the wallet, there are 3 security questions you need to answer. These security questions can not be reset. 

This isn't a flaw in the system. It's the feature that makes self-custody work. The same mathematical certainty that prevents Shipfinex from accessing your wallet without permission also prevents recovery if you lose access. You can't have censorship resistance without accepting the responsibility that comes with it.

What’s Coming Next

In the coming weeks, we’ll explain:

• how Shipfinex’s wallet security mechanisms work

• why Polygon was selected as infrastructure

• how customers can independently verify holdings

• operational readiness before wallet activation

Wallet access will be enabled only after successful KYC verification and readiness checks.