I don’t view Breez as self custodial. They appear to manage liquidity by being a “man in the middle” for payments. It seems like they don’t custody payments for very long, but for a brief period they take possession of your funds.
I think it’s great that they do so because self-custodial Lightning is difficult to manage. I just don’t think they should say they are self-custodial when they aren’t 100% self-custodial.
I maintain that we’re moving now into a custodial world for most people. We’ll need to limit the custodial touch points and risks through smart technology (like Breez) and geo-distributed federations. https://image.nostr.build/3c5de55e420a17323c36cae0bf0520ac9f65234c77c851145f6099a5a47f140c.jpg