Hats.finance has announced a gradual wind-down of its custodial operation service, according to official sources. The team cites the unsustainability of maintaining a centralized user interface and server operations, and notes there is no current plan to extend the custodial stack.
Since 2021, Hats has pursued the idea that a decentralized market should have decentralized security. Yet smart contract security budgets lag DeFi growth, while advances in security tooling and reusable building blocks reduce demand for custodial protocols.
Going forward, the custodial frontend and backend are expected to go offline on December 31, 2025. The Hats protocol remains live on-chain and DAO-governed; core contracts will continue to operate. To withdraw via the custodial UI, submit by December 17, 2025, with a 7-day cooldown and a 7-day withdrawal window.
Users should plan for on-chain participation through the DAO and align withdrawals with the timeline. Hats emphasizes ongoing on-chain governance while winding down centralized custodial services.
Source: https://en.coinotag.com/breakingnews/hats-token-faces-wind-down-as-hats-finance-phases-out-custodial-services-by-december-31-2025
