Protego pivots to launch NDTC after a $200M investment deal collapse, aiming to deliver regulated digital asset services to institutions.
NDTC will provide custody, trading, and lending for digital assets, integrating advanced tech with strict fiduciary and regulatory standards.
The trust-only model of NDTC seeks to lower costs and support institutional adoption of digital assets without heavy infrastructure demands.
Protego Holdings has filed for a national trust bank charter under the name National Digital Trust Company (NDTC). The application, submitted to the Office of the Comptroller of the Currency (OCC), signals a renewed push into digital banking. NDTC aims to become a specialized financial institution offering regulated digital asset services.
The proposed trust will focus on custody, trading, lending, and asset issuance, targeting institutional demand for secure and compliant solutions. This move follows Protego’s legal clash with Blackie Capital, which allegedly defaulted on a $200 million investment crucial to Protego’s initial crypto banking venture.
NDTC to Bridge Traditional Finance and Digital Assets
NDTC plans to offer comprehensive digital asset services, including custody for cryptocurrencies, NFTs, tokenized securities, stablecoins, and commodities tokens. Besides digital asset custody, it will also provide trading facilitation, lending options, and issuer services within a regulated structure.
Moreover, NDTC will implement segregated client wallets to enhance asset protection. It seeks to merge cutting-edge technology with traditional fiduciary practices. Hence, it will support institutions adopting digital assets without building their own infrastructure.
Additionally, the company aims to reduce service costs by optimizing its digital infrastructure. NDTC will operate strictly as a trust company and will not offer conventional banking services. It will focus exclusively on digital asset management to ensure compliance and operational integrity.
Legal Fallout Spurs Protego’s Strategic Pivot
In March, Protego accused Blackie Capital of derailing its original bank launch. According to a lawsuit, Blackie pledged a $200 million investment in early 2023. However, Protego claims the firm failed to deliver, damaging the company far beyond the promised amount. This setback also nullified Protego’s rare conditional bank approval from the OCC, first granted in 2021.
Protego had already raised $80 million before the Blackie deal. The company believed Blackie, presented as a billion-dollar trust, could fulfill the commitment quickly. Consequently, the failure prompted a sharp strategic pivot toward launching NDTC under a new legal and operational framework.
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