In a surprising move, Protego Trust, a crypto bank charter firm based in Seattle, has laid off most of its workforce. According to a source familiar with the matter, the company let go of over 80% of its employees, leaving only a skeleton crew to keep the business running.
Protego Trust was founded in 2018 with the goal of providing custody and other banking services to institutional clients in the cryptocurrency industry. The firm was one of the first to be granted a banking charter by the Office of the Comptroller of the Currency (OCC) in January 2021, allowing it to operate as a full-fledged crypto bank.
However, Protego Trust’s growth has been slower than expected, and the firm has faced stiff competition from larger players in the market. The company’s decision to lay off most of its workforce is likely a result of these challenges and a strategic move to cut costs and refocus its business strategy.
The news of Protego Trust’s layoffs comes amid a turbulent time for the cryptocurrency industry, which has seen several high-profile companies cut their workforces in recent weeks. Crypto analytics firm Messari, for example, recently announced that it had laid off 15% of its workforce as part of a restructuring effort.
Protego Trust’s layoffs are also a setback for the OCC, which has been working to promote the growth of the cryptocurrency industry by granting banking charters to firms like Protego Trust. The OCC has faced criticism from some quarters for its approach to regulating the crypto industry, with some arguing that it is too lax and others that it is too restrictive.
Despite the challenges facing the crypto industry, many experts remain bullish on its long-term prospects. The market has seen significant growth in recent years, and many believe that cryptocurrencies and blockchain technology have the potential to revolutionize the financial industry.
For now, however, Protego Trust’s layoffs serve as a reminder that even in a fast-growing industry like crypto, success is not guaranteed. As companies compete for market share and navigate a complex regulatory landscape, some will inevitably struggle to stay afloat.
Author
Chris Munch is a professional cryptocurrency and blockchain writer with a background in software businesses, and has been involved in marketing within the cryptocurrency space. With a passion for innovation, Chris brings a unique and insightful perspective to the world of crypto and blockchain. Chris has a deep understanding of the economic, psychological, marketing and financial forces that drive the crypto market, and has made a number of accurate calls of major shifts in market trends. He is constantly researching and studying the latest trends and technologies, ensuring that he is always up-to-date on the latest developments in the industry. Chris’ writing is characterized by his ability to explain complex concepts in a clear and concise manner, making it accessible to a wide audience of readers.
