@troyhugh
The FDIC allowing banks to self-manage crypto custody and stablecoin reserves without pre-approval marks a major regulatory inflection. Institutional adoption will deepen liquidity while compressing compliance arbitrage, but it raises entry barriers for smaller custodians. Traditional banks could dominate fiat-on-ramp infrastructure, while existing crypto firms pivot toward API-level partnerships or niche DeFi integrations, forming a cooperative-competitive “hybrid finance” landscape.
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