The United States has approved the creation of a new national bank for the first time during President Donald Trump’s second term, granting a federal charter to crypto-friendly startup Erebor Bank.
The Office of the Comptroller of the Currency (OCC) confirmed the approval on Friday, allowing Erebor to operate nationwide, the Wall Street Journal reported, citing people familiar with the matter.
Erebor will launch with approximately $635 million in capital and plans to serve startups, venture-backed firms and high-net-worth individuals — a segment left largely underserved following the collapse of Silicon Valley Bank in 2023.
The bank is backed by several prominent technology investors, including Andreessen Horowitz, Founders Fund, Lux Capital, 8VC and Elad Gil. Erebor was founded by Oculus co-creator Palmer Luckey, who will serve on the board but will not be involved in day-to-day management.
Focus on emerging technologies
Erebor is positioning itself as a specialist lender for emerging sectors such as defense technology, robotics, artificial intelligence and advanced manufacturing. Potential clients include companies working on AI-powered factories, aerospace research and pharmaceutical production in low-gravity environments.
“You can think of us like a farmers’ bank for tech,” Luckey told the WSJ, arguing that traditional lenders often lack the expertise to evaluate startups with unconventional assets and business models.
The bank also plans to integrate blockchain-based payment rails that enable continuous settlement — a departure from the traditional US banking system, where transactions are typically limited to business hours. The Federal Deposit Insurance Corporation has already approved deposit insurance for the institution.
Erebor’s strategy includes extending credit backed by cryptocurrency holdings or private securities, as well as financing purchases of high-performance artificial intelligence chips.
Valuation climbs to $4 billion
Erebor received preliminary conditional approval from the OCC in October, followed by approval of its deposit insurance application from the FDIC one month later.
The firm was valued at approximately $2 billion in a funding round last year and later reached a $4 billion valuation after raising $350 million in a round led by Lux Capital.
