I have been playing around with the idea of a (non-investment) Bank offering BiTCoin custody and payment services. Some of the key benefits I see:
- Bank standard IT security; same IT security as for your cash/debit/savings accounts.
- Integrated with your non-crypto accounts; one stop shop.
- Under regulatory framework; consumer protection and yearly (tax) statements.
- High level of familiarity for the less BiTCoin experienced user (from the user perspective it works, more or less, just like any other bank account).
- BiTCoin addresses are legally linked to owner; no anonymous accounts. Together with the regualtory framework, I believe this would be very valuable for merchants, as it provides a vehicle through which they can 'guarantee’  their accounts and BTC holdings.
- Proper, audited and regulated accounting (if anything, Banks generally run tight accounting; very unlikly a MT Gox scenario could unfold at a bank).

I do have some premises though:
- On the basis of a custody account like structure only (e.g. like a equity deposit account). Added benefit is that, if the bank defaults, your holdings are guaranteed (at least this is how Dutch Law works).
- No lending activities, secured or unsecured.
- No speculation by both the Bank and the Consumer.
- No termed business.
- More or less the same qualifications and identifications needed to open a BTC Account, as for (e.g.) a regular Checking account.
- Banks opt as a Broker only for USD/BTC conversions. A central clearing organization may be needed here to support.

One key downside i see is that you will likely not get any interest. That’s the price you pay for prohibiting lending and termed business.

So what do you think?