This is true, and I’m pretty stoked that they are finally arriving, but this obviously comes with trade offs on sovereignty, and the custodians who implement it are at risk of a regulatory attack - potentially putting them and all their users at risk.

None of what I said is a claim that custodial privacy can’t exist, simply that removing the activity from the chain itself, while maintaining the power of the individual to still exit unilaterally, opens up a lot of privacy possibilities without giving up ownership assurances.