News told Fortune that the firm did not meet pre-conversion requirements. According to the spokesperson:
“[The] pre-conversion requirements included policies, procedures, systems and other measures to ensure the safe and sound operation of the bank as well as meeting minimum capital and liquidity requirements.”
Protego, based in Washington state, was granted an 18-month conditional charter in February 2021, and it was extended once. Under a conditional charter, an organization cannot accept deposits. An unnamed source told Fortune that Protego had lined up agreements on the necessary financing to meet charter requirements by the Feb. 4 deadline, but it did not receive a firm answer about its charter.
An OOC bulletin dated March 5–11 listed Protego and indicated that time had expired on its conversion on Feb. 4.
Related: 89% still trust centralized custodians despite 2022’s collapses: Survey
Protego founder and executive chair Greg Gilman told Fortune that he felt the company had met
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