TLDR
- Erebor Bank received preliminary OCC approval to operate as a national bank serving crypto and tech sectors
- Peter Thiel, Palmer Luckey, and Joe Lonsdale back the Columbus, Ohio-based institution
- Bank plans to hold $1 million in crypto and serve AI, defense, and digital asset companies
- Approval process took four months after June 11 filing, full operations pending compliance reviews
- Move signals regulatory shift as Coinbase, Circle, and Ripple pursue similar banking charters
The Office of the Comptroller of the Currency granted preliminary approval to Erebor Bank, marking the first new national bank charter under Comptroller Jonathan Gould. The bank is backed by billionaire Peter Thiel and other prominent tech investors.
Erebor submitted its application on June 11 and received conditional approval after a four-month review process. The institution is based in Columbus, Ohio.
Comptroller Gould stated that the OCC “does not impose blanket barriers to banks that want to engage in digital asset activities.” He emphasized that permissible digital asset activities have a place in the federal banking system when conducted safely.
The bank must complete compliance, cybersecurity, and capital adequacy reviews before launching full operations. This process could take several months.
Target Market and Services
Erebor plans to serve businesses in artificial intelligence, defense, manufacturing, and digital assets. The bank will also provide services to payment processors, venture funds, and trading firms.
Bank filings show Erebor expects to hold approximately $1 million in cryptocurrency for transactional purposes. This represents a measured approach to digital asset exposure.
A source close to the company described Erebor as aiming to be “a stable, low-risk, reliable bank doing normal banking things without screwing everyone over with undue risk.”
The institution positions itself as a replacement for Silicon Valley Bank, which failed in March 2023. That collapse, along with failures at Silvergate Bank, Signature Bank, and First Republic Bank, left tech startups and crypto firms without stable banking partners.
Rising interest rates during 2023 made financing harder for innovation economy companies. Many businesses struggled to access traditional banking services after the regional banking crisis.
Regulatory Environment Changes
The approval comes as multiple crypto companies seek expanded banking licenses. Coinbase applied for a national trust company charter with the OCC. The exchange does not plan to become a traditional bank but wants to expand payment and custody services.
Circle, the USDC stablecoin issuer, has applied to establish a national trust bank. Ripple Labs filed for a similar license.
Banking trade groups have opposed granting charters to crypto companies, citing policy concerns. Custodia Bank founder Caitlin Long suggested the issue may require court resolution.
In May, the OCC issued guidance confirming banks can buy and sell cryptocurrencies held in custody for customers. The policy allows outsourcing crypto custody to third parties meeting safety standards.
Gould was confirmed by the Senate in June with a 50-45 vote. He became the first permanent OCC comptroller since 2020. His background includes work at blockchain firm Bitfury.
Under his leadership, the OCC removed “reputation risk” references from guidance documents. This change reduces barriers for banks engaging in crypto services.
Political Developments
President Donald Trump recently signed the GENIUS Act, establishing oversight rules for stablecoin issuers. Congress is debating additional crypto market structure legislation and central bank digital currency limits.
Senators Elizabeth Warren, Chris Van Hollen, and Ron Wyden raised concerns about potential conflicts of interest. They questioned whether the OCC can maintain impartial oversight given Trump’s involvement in crypto ventures.
Erebor’s backing includes Palmer Luckey, founder of Anduril Industries, and venture capitalist Joe Lonsdale. The bank will operate as a full-service national bank offering deposits and lending services with integrated digital asset operations under federal regulations.
