DrZhivago on Nostr: I think the largest difference is the ability to fractionally lend can be divorced ...

I think the largest difference is the ability to fractionally lend can be divorced from the ability to custody.

If you have BTC on-chain you can be certain it is in your custody. Whereas in a bank, the custodian can default and lose what you thought you had.

Fractional lending will certainly continue to exist, but blow-ups can be more localized instead of systemic. Lending will become opt-in.