What Are the Main Benefits of a Centralized Exchange’s Custodial Model for Retail Traders?

The custodial model offers simplicity and ease of use, as the exchange handles all the technical aspects of asset security and settlement. It allows for fast, real-time trading and immediate clearing of trades, which is crucial for high-frequency retail activity.

This convenience, coupled with regulatory oversight in some jurisdictions, provides a high degree of trust and accessibility for non-professional traders.