Hats Finance to Cease Custodial Operations by End of 2025

According to ChainCatcher, decentralized security project Hats Finance has announced on the X platform that it will permanently shut down its custodial operations. The decision comes as maintaining a centralized user interface (UI) and server is deemed unsustainable, with no plans to adopt new legal or operational frameworks to continue this custodial structure. The current arrangements are as follows: Hats.finance's custodial user front-end and back-end (UI and server) are expected to go offline by December 31, 2025. Most functions relying on this custodial architecture will be gradually phased out. However, the Hats protocol will remain deployed on-chain and managed by a DAO, with core contracts intended to operate continuously according to code. Currently, a version of the user front-end based on IPFS is available, allowing users to access it through public gateways as long as the service is provided. Due to the cessation of payments to current fixed service providers like Pinata, the availability and performance of this version cannot be guaranteed. Users can submit withdrawal requests via the custodial UI until December 17, after which they will need to interact directly with the contract to complete withdrawals.