Crypto firm Protego has received conditional approval for a federal bank charter from the Office of the U.S. Treasury (OCC). It is the second cryptocurrency platform to have received permission from the Office of the Comptroller of the Currency to operate as a national trust bank. The charter is conditional with Protego being authorized as a national trust bank rather than a traditional bank.
Protego Intends to Serve Institutional Clients Interested in Digital Assets
The Protego Trust Company is now being reorganized into Protego Bank Trust N.A. Set to launch this year, the company will extend its custody, trading, and lending services to customers in the United States.
In the announcement release, Doug Mehne, Protego’s Chief Operating Officer, said:
“Our best-in-class custody and trading technology was designed by people who have worked within the largest financial organizations in the world and who understand the requirements of those high-performing, complex, regulated businesses,” stated Bonnie Wells, the Bank’s Chief Compliance Officer.”
Protego intends to serve institutional clients interested in digital assets. It plans on being a vertically integrated and fully regulated bank built on the blockchain. As a nationally chartered trust bank, it can hold, trade, lend and issue digital assets to clients. According to the bank, these will be its four primary services.
According to the press release, the bank will have 18 months to months to meet all the terms of its conditional approval to operate as a national bank.
Conditional Bank Charter Signifies Limitations in Scope
The conditional bank charter signifies that the proposed Protego Trust Bank will be limited in scope. This means that it won’t make direct loans or take deposits but will provide custody services for clients for holding digital assets.
Protego is the second crypto firm to receive conditional approval from the OCC, following Anchorage. It follows several other crypto firms that have received bank charters, including crypto exchange Kraken and de novo bank Avanti, both having received state charters in Wyoming.