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Basically: self custody > privacy preserving federated custodian > normal custodian
sometime self-custody doesn't even matter given the specific implementation.
As an example, imagine your airline issues "Airline Tokens" (each token represents 1 airline mile). Does that really matter if you self custody? they are only redeemable by the airline....soooo...self-custody is a bit pointless in that regard.
However, imagine all major retailers join together as a federation of "Award Points Federation" and your airline is a member.
The result is that it removes the single point of failure of your airline just deciding to zap your air-miles balance to 0....basically it becomes a beneficial tradeoff given the reality of redemption.
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Custodianship is relatively lame to self custody, but privacy preserving custodianship is relatively awesome to normal custody.
Basically: self custody > privacy preserving federated custodian > normal custodian
It gets kind of interesting too when your fedimint custodian allows you to run smart contracts against the funds they are custodying. Seems like every custodian could become a Liquid-like federation; although, that might be naive.
Disclaimer: my understanding of Fedimint is strictly high level.