This is an important thread and gets the very heart of why Bitcoin Cash's tokens/contracts, though not as general-purpose as ETH's, are particularly well suited for Non-Custodial Financial Services.

True Non-Custodial Financial Services actually cannot be built on Ethereum due to its balance transaction model, as opposed to Bitcoin's UTXO (multiple input/output model). NCFS providers will choose Bitcoin.

https://twitter.com/vinarmani/status/1174317831564873729

An enterprise is non-custodial when funds move DIRECTLY from buyer to seller (and the NCFS provider is paid directly by one or both parties as well)

https://twitter.com/cgcardona/status/1174533897700311040

If you fund a contract (ETH smart contract, which is different than a BCH script contract) and the contract then routes funds, that isn't non-custodial. Not legally at least.

https://twitter.com/cgcardona/status/1174534054898585600

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source https://www.reddit.com/r/btc/comments/d68r28/this_is_an_important_thread_and_gets_the_very/