"The world of finance hails the invention of the wheel over and over again, often in a slightly more unstable version. All financial innovation involves in one form or another, the creation of debt secured in greater or lesser adequacy by real assets."
In the 2008 financial crisis, some have paraphrased this as "All financial innovation is leverage dressed up as something different."
But that then begs the question, what happens if the custodian goes bust? Well custodians also have a custodian, diversifying the risk one step further (but not completely). Custodian inception!
Further on this here:
https://moneykingnz.com/what-happens-to-your-money-if-invest...
Sure it's true at some level but not a useful distinction if you're a customer or vendor.
The basic underlying principle of a product/service should be communicable and relatively universal. The details are of how it's tailored to your specific situation should come with cons and unknowns in other situations.
If it's not communicable and/or sounds like there are no cons they're not being honest about what it is (intentionally or unintentionally).