Crypto-Friendly Bank Erebor Wins US Charter

Erebor Bank has secured the first newly issued US national bank charter of President Donald Trump’s second term. This marked a rare approval for a crypto-focused lender aiming to serve startups and wealthy clients left exposed after recent bank failures.

Erebor Bank Secures Rare Federal Approval

Erebor Bank received approval from the Office of the Comptroller of the Currency to operate as a national bank, according to people familiar with the decision. The move makes it the first new bank charter granted during Trump’s second term and one of the few approvals in recent years. The bank launches with about $635 million in capital and plans to operate across the United States.

The approval comes after a long review process. Erebor gained conditional approval from the OCC in October, followed by deposit insurance approval from the Federal Deposit Insurance Corporation one month later. With both steps completed, the bank is cleared to begin operations nationwide.

The institution was created to fill a gap left after the 2023 collapse of Silicon Valley Bank. Erebor plans to serve startups, venture-backed firms, and high-net-worth individuals who have struggled to find banking partners willing to work with complex or nontraditional assets.

Focus On Advanced Technology And Crypto Lending

Erebor Bank is positioning itself as a specialist lender for industries often avoided by traditional banks. Its target clients include defense technology firms, robotics developers, artificial intelligence companies, and advanced manufacturers. Some potential borrowers work on aerospace research and pharmaceutical production in low-gravity environments.

The bank plans to extend loans backed by crypto assets and private securities. It also intends to finance purchases of high-performance artificial intelligence chips, which have become critical for many technology firms.

Another planned feature is the use of blockchain-based payment systems that allow continuous settlement. This would differ from most US banks, which process transactions only during business hours.

Investors And Valuation Growth

Erebor is backed by well-known technology investors, including Andreessen Horowitz, Founders Fund, Lux Capital, 8VC, and Elad Gil. Oculus co-creator Palmer Luckey founded the project and will serve on the board, though he will not manage daily operations.

The bank was valued at around $2 billion last year before a $350 million funding round led by Lux Capital doubled its valuation to $4 billion. The funding reflects growing investor interest in banks willing to support emerging technology sectors while navigating tighter US banking rules.

In 2025, the Office of the Comptroller of the Currency granted early approval to Erebor Bank, a national lender backed by investor Peter Thiel. The aim was to focus on businesses operating in cryptocurrency, artificial intelligence, and other technology-driven sectors.