Definition of custodian

corporate agent, usually a commercial bank, that holds securities under a written agreement for a corporate client and buys or sells securities when instructed. Custody services include securities safekeeping, and collection of dividends and interest. Custodian banks, and their agents in various countries called subcustody banks, also buy, sell, and deliver securities when instructed by a bank's corporate clients. The bank acts only as transfer agent and makes no buy-sell recommendations.

1. bank or other financial institution that keeps custody of stock certificates and other assets of a mutual fund, individual, or corporate client.
2. person who has the custody or care of something, such as a facility or building; also called caretaker or janitor.

bank or other financial institution that keeps custody of stock certificates and other assets of a mutual fund, individual, or corporate client.