Erebor Bank has received early approval from the Office of the Comptroller of the Currency (OCC) to become a national bank in the United States. This means the firm now has a chance to serve startups in cryptocurrency, artificial intelligence, and defense industries.
The bank was founded by Palmer Luckey and Joe Lonsdale with backing from Peter Thiel’s Founders Fund with an initial plan to bridge the gap left by the collapse of Silicon Valley Bank in 2023.
Opening the Door for Crypto Banking
In a public statement, Comptroller Jonathan V. Gould said the approval shows his promise to support a “dynamic and diverse federal banking system.” He explained, “Permissible digital asset activities, like any other legally permissible banking activity, have a place in the federal banking system if conducted in a safe and sound manner.”
Gould added that the OCC would not block banks from dealing with crypto, as long as they manage risks properly. Erebor is the first new bank, known as a de novo bank, to win such approval under Gould’s leadership since he took office in July.
Erebor said it’s going to set up its main office in Columbus, Ohio, with another branch in New York City. The company said it will run mainly online, and will offer service for both regular banking services and digital asset features. The bank also plans to hold a small amount of cryptocurrency on its own balance sheet and help clients who use stablecoins and other digital tokens. The bank will focus on startups, payment companies, and wealthy customers who work with advanced technology or virtual currencies.
What Comes Next for Erebor
Before it could fully function, Erebor must secure full approval by meeting key requirements. This includes obtaining FDIC insurance, maintaining a 12 percent Tier 1 leverage ratio for its first three years, and getting regulatory clearance for its senior leadership.
Upon final approval, it will join over 1,000 institutions in the federal banking system, which manages more than $16 trillion in combined assets.