Key Takeaways
- The OCC conditionally approved the de novo national bank charter for Erebor Bank.
- The OCC reiterated its openness to banks engaging in digital asset activities if conducted safely and soundly.
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Erebor Bank, a new US bank backed by prominent technology entrepreneurs, including Palmer Luckey, Joe Lonsdale, and Peter Thiel’s Founders Fund, has secured preliminary conditional approval from the Office of the Comptroller of the Currency (OCC) for a new national charter in Columbus, Ohio.
According to a Wednesday statement from the OCC, the approval comes after a thorough review of Erebor’s application. The move has made the firm the first de novo bank to receive preliminary conditional approval under OCC Chief Jonathan Gould.
“I am committed to a dynamic and diverse federal banking system, and our decision today is a first but important step in living up to that commitment,” said Comptroller Gould. “Today’s decision is also proof that the OCC under my leadership does not impose blanket barriers to banks that want to engage in digital asset activities.”
Gould indicated that digital assets, like other bank-permissible activities, can coexist within the federal system under sound risk management. He added that the OCC will “continue to provide a path for innovative approaches to financial services to ensure a strong, diverse financial system that remains relevant over time.”
While the approval is preliminary and conditional, it represents a key milestone, allowing Erebor Bank to move closer to full regulatory authorization.
Erebor will operate as a full-service national bank offering traditional lending and deposit products alongside digital asset services. It plans to hold around $1 million in crypto for transaction fees.
The bank aims to serve technology companies and ultra-high-net-worth clients engaging in virtual currencies and tokenized financial products.
