Great. I wonder when we're going to see the first bitcoin custodial bank get hacked?
At least I expect them get insured, so the only bad thing will be bad publicity (which may compensate today's good publicity).
With that said, yay for the news and the publicity. For the product itself? Meh. If you don't want to put in the work and research to secure your funds, you're probably far better off just buying Grayscale's GBTC. I personally wouldn't trust an old boomer bank to secure keys.
Anyone not following "not your keys, not your coins" deserve their fate.
However, as I said, I expect that to be insured hence the end-user will not lose money.
Interestingly, nobody mentioned here yet the impact of even more KYC Bitcoins, which imho is a big point since we are talking about a bank.