Current bank/government balance sheet woes cause global regulatory finance aversion to self-custody crypto. Quick thread.

Open protocols - product and  economics

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The makeup of bank assets are primarily bonds. Market price of bond portfolios are red for all bank portfolios. The losses are unrealized since bonds are held to maturity. This game works so long as easy liabilities (deposits) are available.

Depositors shifting to self custody crypo at scale would cause massive bank failures and government bond markets would need to find a new buyer. Those with the power i.e., global finance regulators are not going to let this happen w/o a fight.