Crypto-friendly startup Erebor Bank has become the first newly chartered national bank approved during President Donald Trump’s second term, marking a significant moment for digital assets and emerging technology finance in the United States.
The Office of the Comptroller of the Currency (OCC) granted Erebor permission to operate nationwide, according to reporting from The Wall Street Journal. The approval allows the bank to formally launch with approximately $635 million in capital, positioning it as a key financial player for sectors often overlooked by traditional banks.
Erebor Bank Targets Tech Startups and Crypto-Backed Lending
Erebor aims to serve startups, venture-backed companies, and high-net-worth individuals, particularly those affected by the funding gap left after the 2023 collapse of Silicon Valley Bank. The bank plans to specialize in emerging industries such as defense technology, robotics, advanced manufacturing, artificial intelligence, and aerospace research.
Founded by Oculus VR co-creator Palmer Luckey, Erebor is backed by major technology investors including Andreessen Horowitz, Founders Fund, Lux Capital, 8VC, and Elad Gil. Luckey will sit on the board but will not be involved in daily operations.
The bank describes itself as a “farmers’ bank for tech,” emphasizing its ability to evaluate unconventional assets that many traditional lenders struggle to understand. Erebor plans to extend credit backed by cryptocurrency holdings, private securities, and even finance purchases of high-performance AI chips.
Blockchain Payments, FDIC Insurance, and a $4 Billion Valuation
One of Erebor’s standout features is its plan to integrate blockchain-based payment rails, enabling continuous, around-the-clock settlement—an uncommon capability in the U.S. banking system, where transactions typically operate during business hours.
The Federal Deposit Insurance Corporation (FDIC) previously approved Erebor’s deposit insurance, clearing a major regulatory hurdle. The bank received preliminary conditional approval from the OCC in October, followed by FDIC approval of its deposit insurance application one month later.
Financially, Erebor has seen rapid growth. Initially valued at around $2 billion, the company later doubled its valuation to $4 billion after raising $350 million in a funding round led by Lux Capital late last year.
