Ideally bitcoiners should run their own nodes and custody their own funds.
Many people find the technical challenges of running their own nodes and holding their own funds through recovery phrase management prohibitively difficult, and opt into trusting a third party custodian like exchanges or custodial wallets.
These users sacrifice their privacy and security in favor of speed and convenience. This represents a systemic risk to the bitcoin network as large quantities of bitcoin are aggregated into single custodians.
Fedimint aims to address this by distributing custodianship across millions of communities, making it simple for them to bank themselves. These community focused 'banks' are known as Fedimint Federations.From the article