I'm not sure how banks will replace CEX unless they want to launch a centralized exchange platform. Maybe they can launch an app where people can trade their crypto with money directly, but would the government allow that to happen? I'm referring to how banks don't touch stock trades, options, etc. Is regulation the reason why they don't monopolize everything then? If so, would the profits outweigh the cost if the government allowed them to provide the market while acting as a custody for its customers? Alternatively, they can continue acting as a custodian and enjoy fees from exchanges without exposing themselves to risks like hacks, etc. CMIIW.