I have to admit... I am not done processing this news, and the concept gives me a little pause.

BUT. One thing I think many have not yet seen (gawd I sound like CSW) is the fact that the Bitcoin blockchain will continue to be the most secure distributed shared database on the earth.  And that quality gives it the unique ability to underpin these sorts of products.

One thing you often hear from the mouths of alt-coiners is that Bitcoin will not be able to pay the miners after a few more halving to remain as secure as it should.  But the tradeoffs being made imply the possibility that transactions on the base layer could become quite expensive over time.  Either that or we allow more of them, or a combination.

But what we have here is a transactional currency that is rooted in the security of the base chain.

I really wish Finney had lived to see this.  I would love to hear his thoughts on the matter.  I feel like it could be a sort of extension to what he described with his "bitcoin banks" ideas.

Is it dangerous?  Does it somehow subvert Bitcoin and give control back to the elites?  

I have no idea.  But I do know we will hear that a lot.  Tech surprises us.  This is a VERY interesting evolution in the history of Bitcoin.  i do think this is going to get the attention of a lot of very powerful people.  And the fun part is... if the Fed does not allow the dollar to be traded this way, then something else will happen instead.  They either embrace this.  Or they get steamrolled.