I still think self custody is the biggest advantage Bitcoin gives us.

Etson

That's a fair point. Self custody is still the part that matters most to me.

bonkk

Made me think a bit differently about institutional adoption.

BlockSmith

, individuals hold 66.1% of Bitcoin’s maximum supply – roughly 

 compiled by Strategy assigns 25 large financial institutions a composite score of 32% across five dimensions: custody, trading, investment products, lending, and management support

The traditional banking model is built on 

: the bank collects deposits, holds a fraction in reserve, and lends or invests the rest. The depositor believes they own their money; in reality they 

 against the bank. As long as everyone does not demand their funds back at the same time, the system works. When they do, it is called a 

. This architecture rests on a silent premise: the underlying asset is expandable. If there is a liquidity shortage, the central bank can create new base money. The relief valve is always available.

Every BTC that enters a bank custody system

 – the incentive to lend against the custodied asset exists, is documented, and is precisely the reason banks are building that infrastructure. The 32% average score on Strategy’s index measures how much banks have already built. It also measures how much they still have to build.

bitcoin

bitcoin_beginners

From article :

According to the [Bitwise Crypto Market Review Q3 2026](https://bitwiseinvestments.com/crypto-market-insights/crypto-market-review-q3-2026), individuals hold 66.1% of Bitcoin’s maximum supply – roughly **13.9 million BTC** out of 21 million. Meanwhile, the **Bitcoin Banking Adoption Index** compiled by Strategy assigns 25 large financial institutions a composite score of 32% across five dimensions: custody, trading, investment products, lending, and management support

The traditional banking model is built on **fractional reserve**: the bank collects deposits, holds a fraction in reserve, and lends or invests the rest. The depositor believes they own their money; in reality they **own a claim** against the bank. As long as everyone does not demand their funds back at the same time, the system works. When they do, it is called a **bank run**. This architecture rests on a silent premise: the underlying asset is expandable. If there is a liquidity shortage, the central bank can create new base money. The relief valve is always available.


**Every BTC that enters a bank custody system** carries with it a potential **uncovered claim** – the incentive to lend against the custodied asset exists, is documented, and is precisely the reason banks are building that infrastructure. The 32% average score on Strategy’s index measures how much banks have already built. It also measures how much they still have to build.