PSA: Current FAQ

Why is a custodial partner necessary?

To have better accountability and transparency of BAT, to reduce fraud, and to abide by government regulations.

In the past, Brave allowed people to earn BAT in the form of vBAT. This vBAT was able to be tipped to Creators and would be able to be earned even while not Verified. Unfortunately this resulted in a lot of people creating bot accounts and even offered exchanges on Discord and others, where transactions were occurring that were nothing short of money laundering. This illegal activity definitely caused some negative feedback and potential issues, especially from governments.

That aside, there also was the issue of people who lost devices, quit using Brave, etc. With BAT being a closed system with a limited supply, this made things difficult for Brave to be able to guarantee we had BAT circulating and available for everyone. By moving to the idea of using custodial partners, there’s no more worry about whether anything was lost to corrupt profiles, lost devices, etc. and there’s better accountability overall.


It has been teased that Brave is looking into options that will allow them to offer on chain BAT payouts. If done, this would likely be done on Solana. This would be part of Boomerang.

If and when this happens, it would erase the requirement for using a custodial partner. Stay tuned for more possible news on this in the future. They are still going through legal and trying to make sure that this could be done with no issues.