OCC guidance paves way for Erebor’s crypto-bank ambitions
New OCC rules on crypto custody lower barriers for billionaire-backed banks like Erebor
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The Office of the Comptroller of the Currency (OCC) has granted preliminary conditional approval for a de novo national bank charter to Erebor Bank.
The approval positions Erebor Bank, a venture backed by Anduril founder Palmer Luckey and firms connected to Joe Lonsdale and Peter Thiel, to become one of the first federally-chartered banks built around the innovation-economy client base once served by Silicon Valley Bank.
According to Erebor’s June filing, investors plan to commit around $250 million in capital through 8VC, Founders Fund, Haun Ventures, and other backers. The proposed leadership team includes Michael Hagedorn as president, with Owen Rapaport and Jacob Hirshman serving as co-chief executives.
Erebor’s application outlines a target clientele spanning crypto, AI, and defense startups as well as high-net-worth individuals in those sectors. The bank also intends to assist foreign banks with U.S. dollar-based transactions.
In its OCC filings, Erebor describes plans to become “the most regulated entity conducting and facilitating stablecoin transactions,” to promote “broader acceptance of stablecoins,” and to accept cryptocurrencies as collateral for certain loans. Stablecoins are digital tokens whose value is pegged to a currency such as the U.S. dollar, often backed by cash or short-term Treasuries to maintain price stability.
Comptroller Jonathan V. Gould called the move a milestone for a “dynamic and diverse federal banking system,” adding that the agency “does not impose blanket barriers” to banks that want to engage in permissible digital-asset activities, provided they are conducted in a safe and sound manner.
While the OCC’s conditional approval confirms Erebor’s eligibility to proceed, the bank must still meet all pre-opening requirements, including capital adequacy, governance, and compliance testing.
This is a developing story.
This article was generated with the assistance of AI and reviewed by editor Jeffrey Albus before publication.
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