OCC Conditionally Approves Protego Trust Company for Federal Trust Bank Charter

On February 5, 2021, the Office of the Comptroller of the Currency conditionally approved Protego Trust Company's conversion to a federally-chartered trust bank, making it the second cryptocurrency firm to obtain such a charter following Anchorage Digital Bank's January 2021 approval. Protego, based in Seattle, provides cryptocurrency custody and trading services. The conditional approval requires Protego to meet several milestones within 18 months, including establishing safe and sound operational systems, obtaining Federal Reserve System membership, securing fidelity bond coverage, and entering into a written Operating Agreement and Capital and Liquidity Support Agreement with the OCC.

The approval signals the OCC's continued openness to granting bank charters to crypto-native firms, expanding the intersection of digital assets and traditional banking infrastructure. This development is significant for the BaaS and embedded finance landscape as federally-chartered crypto trust banks could serve as infrastructure providers for fintech platforms seeking regulated crypto custody and trading capabilities.