All these "products" will necessarily go bust. Think about what they're doing. The lend fiat using property as collateral.
What's new? The fact that they accept BTC instead of a house? When you borrow against the house, what you do is sign a contract with the lender that says if you don't pay they take legal possession. Which must be court-enforced. Which means KYC.
So what's the big deal about "self-custody"? You don't have the bankers squat in your house when you borrow. The contract is enforced by the courts, that's enough.
Or maybe I'm getting it all wrong and they're saying that they will lend fiat to random people without contract or KYC?
If that's not the case, all it takes is one "normal" bank to stop being obtuse and simply apply the same rules they already apply to other forms of property, and all these companies asking for stupid premiums just for the novelty will disappear.
DLCs noncustodial, so they don’t control the assets. no KYC
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They just wire USD to wherever you tell them? No court-enforceable contract?
they send you USDC. you can off ramp to bank dollars if you want and that may require KYC, but you can send USDC somewhere else if you want
Ah so that's the trick. Got it.
