Interesting... I wonder if this comes as a reaction to more and more traditional companies holding assets in Bitcoin or whether it's the other way around with the hodling companies anticipating the upcoming changes.
It still seems like they try to their hardest to distance themselves from cryptocurrencies and make their own thing. At least that's the impression I get with them using the term "INVN" instead of already established terms such as "Blockchain" or even "DLT" which used to be the go-to term. (of course INVN might also be already an established technical term in banking including connotations that I'm not aware of, but when googling it I only find the stock ticker of an existing company)
My guess is that this is the start of banks trying to establish their own stablecoins. Maybe cooperate with existing stablecoin operators such as gemini. I don't think banks are yet ready for Bitcoin deposits. Not because they couldn't, but because they haven't yet given up on control.
I'm not so sure about people keeping their BTC in banks because that would defeat the purpose, but I suppose less technical people will see that as the safer option. Ethereum probably benefits from this the most though, considering how many big stablecoins are already built on top of it.
I think more newcomers keep their coins on exchanges than care to admit, so I wouldn't be surprised about people keeping their BTC in banks, no matter the silliness.
Good point about Ethereum. I do think that another likely scenario is banks trying to establish their own stablecoins on a smallish Ethereum clone that they can buy into and promote for profit though.