Institutional cryptocurrency custodian Protego’s conditional nationwide belief banking constitution has expired with out it receiving everlasting approval, in response to a March 17 report in Fortune.

A spokesperson for america Workplace of the Comptroller of the Foreign money (OCC) told Fortune that the agency didn’t meet pre-conversion necessities. In response to the spokesperson:

“[The] pre-conversion necessities included insurance policies, procedures, techniques and different measures to make sure the protected and sound operation of the financial institution in addition to assembly minimal capital and liquidity necessities.”

Protego, primarily based in Washington state, was granted an 18-month conditional constitution in February 2021, and it was prolonged as soon as. Below a conditional constitution, a corporation can’t settle for deposits. An unnamed supply informed Fortune that Protego had lined up agreements on the mandatory financing to satisfy constitution necessities by the Feb. 4 deadline, but it surely didn’t obtain a agency reply about its constitution.

An OOC bulletin dated March 5–11 listed Protego and indicated that point had expired on its conversion on Feb. 4.

Associated: 89% still trust centralized custodians despite 2022’s collapses: Survey

Protego founder and government chair Greg Gilman informed Fortune that he felt the corporate had met the financing requirement and the corporate may both reapply to the OCC, which is a division of the federal Treasury Division, or apply to state authorities to function as a state financial institution.

A federal constitution would have allowed Protego to custody digital belongings and carry out credentialing features, corresponding to Know Your Buyer measures. At current, Anchorage Financial institution is the one crypto agency to obtain a nationwide banking constitution.

Custodia Financial institution was denied a place in the Federal Reserve System on Feb. 23. Paxos additionally received a conditional national trust financial institution constitution in 2021. A spokesman stated that the corporate “continues to work constructively with the OCC” on its pending software.