The United States approved a newly created national bank for the first time during President Donald Trump’s second term, granting a charter to cryptocurrency-friendly startup Erebor Bank.
The Office of the Comptroller of the Currency (OCC) on Friday confirmed the approval, which will allow the lender to operate nationwide, Wall Street Journal reportedciting people familiar with the matter.
The institution is launching with approximately $635 million in capital and aims to serve startups, venture-backed companies and high-net-worth clients, a segment that remained underserved after the 2023 collapse of Silicon Valley Bank.
Erebor is backed by a number of prominent technology investors, including Andreessen Horowitz, Founders Fund, Lux Capital, 8VC and Elad Gil. The project was founded by Oculus co-founder Palmer Luckey, who will serve on the board but will not manage day-to-day operations.
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Erebor focuses on defense technology, robotics and artificial intelligence
The bank is reportedly positioning itself as a specialist lender for emerging industries such as defense technology, robotics and advanced manufacturing. Potential customers include companies developing artificial intelligence-based factories, aerospace research and pharmaceutical production in low-gravity environments.
“You can think of us as a tech farmers’ bank,” Luckey reportedly told the WSJ, arguing that classic banks often lack the expertise needed to evaluate startups with unconventional assets.
Erebor also plans to integrate blockchain-based payment rails to enable continuous settlements, an unusual feature in the US banking system where transactions typically take place during business hours. The Federal Deposit Insurance Corporation previously approved deposit insurance for this institution.
The bank’s strategy includes expanding lending secured by cryptocurrency or private securities portfolios and financing purchases of high-performance artificial intelligence chips.
Related: OCC comptroller says WLFI charter review will remain apolitical
Erebor’s value reaches $4 billion
In October, Erebor received preliminary conditional approval from the OCC. A month later, an application for deposit insurance was submitted approved by the Federal Deposit Insurance Corporation.
Erebor was valued at around $2 billion in a funding round last year and later achieved a valuation of $4 billion after raising $350 million in a funding round led by Lux Capital.
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