Could it be that all the obsession with self-custody comes not from the fact that every single satoshi used in the world must be self-custodied, but because regulators will punish whoever operates a custodian that doesn't suck?
Discussion
The aspect of self custody that everyone is overlooking is the ability to directly bid on blockspace without a trusted 3rd party. The ability for users to directly bid on #Bitcoin blockspace is critical to the security model.
Trusted 3rd party introduce onchain censorship and self custody is what secures the network.
Therefore giving users a chance to bid on bitcoin blockspace w/out financial institutional control.
No. it's because if you hold your sats with a custodian it will get seized!!