Swan has partnered with both Fortress Trust and BitGo, who are licensed and qualified custodians based in the United States.
Swan client coins are in insured cold wallets at BitGo while Fortress assists in the liquidity, market making, and banking activities. Swan set up this agreement with Fortress to use BitGo as a cold storage sub-custodian to increase security for our customers. The agreement requires daily reconciliation between the three parties. It requires approval by BitGo to move any coins from BitGo to Fortress with Swan having full on-chain visibility.
For a deeper exploration of why Swan chooses to partner with qualified custodians, and for an overview of custodial risks in general, please read here.