Protego Trust Becomes the Second Nationally Chartered Crypto Bank

Protego Trust Becomes the Second Nationally Chartered Crypto Bank

Protego Trust has obtained conditional approval from the U.S. Office of the Comptroller of the Currency (OCC) to transition into a nationally chartered cryptocurrency bank. This approval makes Protego the second digital asset financial institution to secure a federal charter, following Anchorage in January 2021.

Protego’s Role as a National Crypto Bank

Protego is poised to become a regulated crypto asset bank offering a vertically integrated suite of services for institutional clients. Once operational, it will provide:

• Crypto Custody Services: Secure storage and management of digital assets.
• Insurance for Digital Assets: Protection against potential risks.
• Lending and Borrowing Solutions: Enabling institutional investors to leverage digital assets.
• Trading Solutions: Seamless trading of cryptocurrencies within a regulated framework.

Transition to a Federally Regulated Entity

Reorganization Plans

Protego is currently a Washington state-chartered trust company undergoing reorganization into a federally chartered trust bank. The OCC’s conditional approval grants Protego 18 months to meet regulatory requirements before commencing operations.

The company plans to launch its services later in 2021, granting it the ability to operate across all 50 U.S. states.

Growing List of Crypto Banks

Anchorage Leads the Way

Protego’s approval follows Anchorage, the first crypto-focused financial institution to receive a national bank charter from the OCC in January 2021.

Wyoming Crypto Banks

Other prominent crypto firms like Kraken and Avanti have also received state charters from Wyoming, enabling them to offer similar services nationwide. However, federal charters like those granted to Protego and Anchorage come with broader operational freedoms.

Institutional Focus and Market Significance

With the OCC’s backing, federally regulated crypto banks like Protego are well-positioned to attract institutional investors. The approval offers a compliant framework for managing digital assets, a critical requirement for large-scale investors.

In addition to Protego and Anchorage, other firms are entering the race for federal charters. For example, MetalPay, a digital payments startup, recently filed with the OCC, signaling growing interest in the institutionalization of cryptocurrency banking.

Conclusion

Protego Trust’s transition into a nationally chartered bank marks another milestone in the institutionalization of the cryptocurrency space. By offering a regulated, secure environment for managing digital assets, Protego is set to play a significant role in the evolving financial ecosystem.

To learn more about the innovative startups shaping the future of the crypto industry, explore our article on latest news, where we delve into the most promising ventures and their potential to disrupt traditional industries.