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The United States has approved a newly created national bank for the first time during President Donald Trump’s second term, granting a charter to crypto-friendly startup Erebor Bank.
The Office of the Comptroller of the Currency (OCC) confirmed the approval on Friday, allowing the lender to operate nationwide, the Wall Street Journal reported, citing people familiar with the matter.
The institution launches with about $635 million in capital and aims to serve startups, venture-backed companies and high-net-worth clients, a segment left underserved after the 2023 collapse of Silicon Valley Bank.
Erebor is backed by a roster of prominent technology investors, including Andreessen Horowitz, Founders Fund, Lux Capital, 8VC and Elad Gil. The project was founded by Oculus co-creator Palmer Luckey, who will sit on the board but not manage daily operations.
Related: Nomura-backed Laser Digital seeks US bank charter amid crypto banking push: Report
Erebor targets defense tech, robotics, AI
The bank is reportedly positioning itself as a specialist lender to emerging industries such as defense technology, robotics and advanced manufacturing. Prospective clients include companies developing AI-driven factories, aerospace research and pharmaceutical production in low-gravity environments.
“You can think of us like a farmers’ bank for tech,” Luckey reportedly told the WSJ, arguing that traditional banks often lack the expertise needed to assess startups with unconventional assets.
Erebor also plans to integrate blockchain-based payment rails enabling continuous settlement, an unusual feature in the US banking system, where transactions typically follow business hours. The Federal Deposit Insurance Corp. previously approved deposit insurance for the institution.
The bank’s strategy includes extending credit backed by crypto holdings or private securities and financing purchases of high-performance artificial-intelligence chips.
Related: OCC Comptroller says WLFI charter review will remain apolitical
Erebor hits $4 billion valuation
In October, Erebor received preliminary conditional approval from the OCC. One month later, its deposit insurance application was approved by the Federal Deposit Insurance Corporation.
Erebor was valued at roughly $2 billion in a funding round last year and later reached a $4 billion valuation after raising $350 million in a funding round led by Lux Capital.
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