OCC Confirms Protego Trust's Conditional National Trust Bank Charter Has Expired

On March 17, 2023, the Office of the Comptroller of the Currency publicly confirmed that Protego Trust Company's conditional approval for a national trust bank charter had expired. The Washington-based crypto firm had originally received conditional approval in February 2021, with the deadline later extended to February 4, 2023. Protego failed to meet critical pre-conversion requirements, including securing $54 million in tier 1 capital and liquidity, as well as establishing required policies and operational systems.

Despite submitting investment agreements, the company could not secure an opening date for its chartered bank operations. The expiration leaves Anchorage Digital as the only crypto-native firm holding an active OCC national banking charter. This development occurred amid broader banking sector instability following the collapses of Silicon Valley Bank and Signature Bank, reflecting heightened regulatory scrutiny of fintech and crypto banking aspirants.

The outcome signals that U.S. regulators remain cautious about granting permanent bank charters to crypto and fintech firms, particularly those that cannot demonstrate sufficient capitalization and operational readiness.