Erebor Bank, a crypto-friendly institution, has secured a U.S. national bank charter, marking the first such approval during President Trump's second term, according to The Wall Street Journal. A spokesperson for the Office of the Comptroller of the Currency (OCC), the agency responsible for regulating national bank charters, confirmed the approval on February 7, 2026.
The bank, named after the Lonely Mountain fortress in J.R.R. Tolkien's The Hobbit, is backed by tech heavyweights including Anduril co-founder Palmer Luckey, Palantir co-founder Joe Lonsdale, and Peter Thiel. Launching with $635 million in capital, Erebor aims to serve businesses in the AI, crypto, defense, and manufacturing sectors. It intends to fill the funding gap left by the collapse of Silicon Valley Bank, assisting startups in accessing crucial capital. Erebor also intends to serve companies outside the U.S. and individuals working for or investing in these companies.
The approval of Erebor's charter signifies a potential shift in the regulatory environment for new bank formations, which had slowed significantly since the 2008 financial crisis. The OCC granted Erebor its preliminary conditional approval, making it the first de novo national bank charter issued since the current administration took office. According to The Wall Street Journal, this approval indicates the Trump administration's commitment to easing the path for new financial institutions.
Erebor applied for the national bank charter less than eight months ago, suggesting regulatory support for emerging financial institutions. The bank plans to offer a variety of lending and deposit products and other related services. According to its charter application, Erebor Bank will offer credit and products, stablecoin-related services, and other services, including data processing, treasury management, credit card issuance and payments services. The bank's goal is to be "the most regulated entity conducting and facilitating stablecoin transactions".
Prior to final approval, Erebor Bank must meet several requirements, including maintaining a minimum 12% Tier 1 Leverage ratio for the first three years, engaging an independent external auditor, and passing a pre-opening examination.
Comptroller of the Currency Jonathan V. Gould stated that the decision demonstrates the OCC's commitment to a dynamic and diverse federal banking system and that the OCC does not impose blanket barriers to banks that want to engage in digital asset activities. He added that permissible digital asset activities have a place in the federal banking system if conducted safely.
Erebor's entry into the financial sector is expected to enhance its influence in the crypto and tech industries.