The Breez + Spark SDK isn't custodial. Spark is a sidechain that does real time submarine swaps for Lightning so the user doesn't have to deal with managing channels and liquidity, so it's not strictly speaking a "true Lightning wallet", but it's not custodial. You hold the keys.
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You holding keys to a lightning IOU nullifies any "custodial" aspect it has. That's the part you're missing.
Spark isn't an IOU like wrapped BTC. It's backed by actual Bitcoin that's been pegged in on the native Bitcoin blockchain. Very similar to Lightning itself.
Personally I'd only hold small amounts on it. But I also treat normal Lightning the exact same way. In both cases you hold BTC in an L2, backed by real BTC locked on L1, but with a different network and trust model.
Spark is not a Sidechain. Sidechains are liquid or RSK
Fair enough, it's a statechain rather than a sidechain.
Who operates the statechain?
