Double-edged sword. On one hand, banks will be (and are being) forced by the market to adopt cryptocurrency -- a clear response to heightening adoption.
On the other hand, this totally defeats the purpose of Bitcoin. I wonder how many people will eventually get screwed over by trusting banks to hold onto their peer-to-peer currency!

Totally agree, however, as much as I hate to say this, one thing I do think is that trusted escrows are needed for crypto adoption. It can be too dangerous/complicated for the everyday joe to properly store and secure their own Bitcoin, even more so if they are technically illiterate. So they could lose their entire retirement fund in one fell swoop, which can be a problem. What I like though, is that using a trusted third party is
totally optional. Bitcoin empowers the users so if they don't want to trust someone with their coins, they don't have to! As long as they know how to properly store their coins, they will be ok.
Either way, I think this is huge news! More and more banks will be adopting crypto in this way IMO, and this is wayyyy better than having a bank create their own centralized cryptocurrency.