Coinbase built wallets for AI agents and called it self-custody. One problem: their own docs say keys never leave Coinbase infrastructure. Agentic Wallets - AI agents can hold funds, transact, pay for services autonomously. The pitch sounds great until you check the architecture. Keys live in AWS Nitro Enclaves managed entirely by Coinbase. Every tx passes KYT compliance screening before signing. Base sequencer still centralized - Coinbase orders every transaction before chain inclusion. Server-side spending limits log everything the agent even attempts to do. Enterprise-grade managed custody. Nothing wrong with that. But marketing it as autonomous self-custody is a stretch. Better approach: MPC-based keys with no single keyholder, decentralized tx ordering, open TEE worker nodes. @out_layer already do this - chain signatures for distributed key management, on-chain verification, no single point of failure.