that's custodial. it's different. cash/assets don't sit on the bank's balance sheet. they're in individual accounts, not usually lent out, and you pay a fee to keep there.

This is the end of the road for crypto's intersection with the official banking system. After the recent financial disasters at FTX, Silicon Valley Bank, Signature Bank, Silvergate Bank, etc, etc, I expect that there is going to a long period where and banks and regulators are no longer keen to experiment with allowing crypto to go more mainstream in the financial system. The tide will turn the other way, and for good reason. It's great that you're all having fun with dog coins or whatever but the financial system is an essential utility to the very survival and stability of human civilization itself, like the electrical grid, or GPS, or plumbing, and I think people will get the picture now about what "innovating" with allowing crazy private currencies to intersect with the official banking system leads to.