The US Office of the Comptroller of the Currency Approves Erebor Bank’s National Charter

Erebor Bank, a tech- and crypto-focused lender backed by notable investors including Palmer Luckey, Joe Lonsdale, and Peter Thiel, has received preliminary and conditional approval for a national charter from the US Office of the Comptroller of the Currency (OCC).

The approval comes four months after Erebor’s application and coincides with the rollout of the GENIUS Act, which aims to establish new standards for stablecoin issuance. The bank plans to operate digitally from Columbus and New York City, leveraging $275 million in capital along with a conservative risk framework.

OCC Grants Erebor’s Charter

On Wednesday, the OCC granted Erebor preliminary authority to establish itself as a federally chartered bank—marking the first such approval under Comptroller Jonathan Gould. This shift signals increased support for innovation within the regulatory framework.

The conditional status allows Erebor’s founders to begin raising deposits, hiring staff, and developing infrastructure while undergoing regulatory checks on cybersecurity, capital, and anti-money-laundering measures before they officially open.

> “The OCC remains committed to a diverse banking system that supports responsible innovation,” said Gould. “Today’s decision is an early step, not the finish line.”

Erebor’s licensing will enable it to engage in lending, custody, and payment services utilizing digital assets. Headquartered in Ohio with a secondary office in New York, Erebor will focus on mobile and web platforms, backed by Founders Fund, 8VC, and Haun Ventures—all significant players in the crypto and fintech sectors.

Before commencing operations, Erebor must also secure approval from the Federal Deposit Insurance Corporation (FDIC), a process that typically spans nine to ten months. Analysts indicate that joint OCC-FDIC oversight could establish new compliance standards for banks involved in digital assets.

Silicon Valley Ties and Political Connections

Erebor’s founding team is closely linked with major figures in Silicon Valley and politics. Co-founders Palmer Luckey and Joe Lonsdale — both known for their connections to President Donald Trump and Vice President J.D. Vance — have made substantial contributions to Republican campaigns. Peter Thiel, another co-founder, remains a prominent conservative venture investor with strong ties to the Trump family.

Despite political connections, the bank’s leadership claims operational independence from its investors. However, the involvement of high-profile backers has led to speculation about the expedited regulatory approval, with critics suggesting it indicates preferential treatment, while proponents highlight Erebor’s robust compliance framework and ample capital.

Changes Ahead for the $312B Stablecoin Market

Erebor’s charter may revolutionize U.S. crypto banking by integrating insured-bank infrastructure with blockchain finance. As outlined in the GENIUS Act, banks2 are to maintain full reserves for issued stablecoins and provide regular disclosures. This could accelerate the adoption of these technologies in the industry.

If fully licensed, Erebor could rival Anchorage Digital in the stablecoin issuance and custody services, while its plans to lend based on crypto or AI hardware could provide additional liquidity for miners, market makers, and infrastructure firms.

Critics, including Senator Elizabeth Warren, have expressed concerns regarding potential favoritism and risks, labeling the approval a “risky venture.” Nonetheless, regulators view this move as a step towards integrating digital assets into a regulated environment.

As of now, the stablecoin market has grown by nearly 18 percent in 2025, potentially reaching $312 billion. Analysts at Galaxy Research predict that regulated banks could capture as much as 25 percent of this market by late 2026 as compliance protocols become more mature.