OCC Grants Charter to Crypto-Friendly Erebor Bank, Valued $4B
The United States has approved a newly chartered national bank for the first time in President Donald Trump’s second term, granting a charter to Erebor Bank, a crypto-friendly startup. The Office of the Comptroller of the Currency confirmed the approval on Friday, enabling the bank to operate nationwide, the Wall Street Journal reported, citing people familiar with the matter.
Erebor launches with approximately $635 million in capital and intends to serve startups, venture-backed companies, and high-net-0d6075ef\\”>valuations after raising $350 million in a Lux Capital-led worth clients, a segment that became underserved following the 2023 collapse of Silicon Valley Bank.
The bank is backed by investors including Andreessen Horowitz, Founders Fund, Lux Capital, 8VC, and Elad Gil. Erebor was founded by Oculus co-creator Palmer Luckey, who will join the board but will not oversee daily operations.
Erebor to focus on defense technology, robotics, and AI
The institution is positioning itself as a specialist lender to emerging sectors such as defense technology, robotics, and advanced manufacturing. Prospective clients include firms building AI-enabled factories, conducting aerospace research, and developing pharmaceutical production in low-gravity environments. Luckey told the Wall Street Journal the bank aims to serve technology companies whose assets and risk profiles are not always easily assessed by traditional lenders.
Erebor also plans to deploy blockchain-based payment rails to enable continuous settlement, a capability that is uncommon in the U.S. banking system, where transactions typically process during business hours. The Federal Deposit Insurance Corp. has previously approved the bank’s deposit insurance.
The bank’s strategy includes extending credit secured by crypto holdings or private securities and financing purchases of high-performance artificial-intelligent chips.
Valuation reaches $4 billion
In October, Erebor received preliminary conditional approval from the OCC. One month later, the Federal Deposit Insurance Corporation approved its deposit insurance application.
Erebor was valued at roughly $2 billion in a funding round last year and subsequently reached a valuations after raising $350 million in a Lux Capital-led round.
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