Custodial yield refers to the return earned by users who have their assets held in custody by a third party, such as a cryptocurrency exchange or a financial service provider. These platforms often lend or stake users’ assets to generate income, which is then shared with the users in the form of yield.When you deposit your cryptocurrency into a custodial account, you typically do not have direct control over the assets. In exchange for this inconvenience, the provider offers yields as a percentage of the deposited amount. This can be attractive for those looking to generate passive income without actively trading.The yield can vary based on factors such as market conditions, the type of asset, and the platform’s specific lending strategies. It’s important to note that while custodial yield can boost your earnings, it also entails risks, including platform security and regulatory issues. Always consider these factors before opting for custodial services to earn yield on your crypto assets.