First US Crypto Bank Gets the Green Light — Backed by Thiel, Luckey, and Lonsdale
The US Office of the Comptroller of the Currency has granted preliminary, conditional approval for Erebor Bank’s nationwide constitution, opening the door for a tech- and crypto-focused lender backed by Palmer Luckey, Joe Lonsdale, and Peter Thiel.
The resolution got here simply 4 months after Erebor’s utility and adopted Washington’s rollout of the GENIUS Act, which set new requirements for stablecoin issuance. The financial institution plans digital-only operations from Columbus and New York, supported by $275 million in capital and a conservative danger framework.
OCC Greenlights Erebor’s $275M Charter
The Office of the Comptroller of the Currency (OCC), the federal company overseeing nationwide banks, granted Erebor preliminary and conditional authority to type a federally chartered financial institution on Wednesday. It is the first such approval underneath Comptroller Jonathan Gould since his July appointment, underscoring a shift towards a extra innovation-friendly regulatory posture.
This standing lets founders increase deposits, rent employees, and construct infrastructure whereas regulators vet their methods. Erebor should full cybersecurity, capital, and anti-money-laundering audits earlier than opening.
“The OCC stays dedicated to a various banking system that helps accountable innovation,” Gould mentioned in an announcement. “Today’s resolution is an early step, not the end line.”
Once totally licensed, Erebor’s constitution will allow lending, custody, and funds utilizing digital-asset rails. Headquartered in Ohio with a secondary workplace in New York, Erebor will function primarily by cell and net platforms. Backers embody Founders Fund, 8VC, and Haun Ventures—all lively in crypto and fintech.
Before launching, Erebor should additionally acquire Federal Deposit Insurance Corporation (FDIC) approval, which generally takes 9 to 10 months. Analysts be aware that twin OCC-FDIC oversight might set a brand new compliance bar for digital-asset banking.
Silicon Valley Money and Trump-Era Links
Erebor’s founding community is deeply intertwined with influential Silicon Valley and political figures. Co-founder Palmer Luckey, additionally the founding father of defense-tech firm Anduril, and Joe Lonsdale, co-founder of Palantir and head of 8VC, have been notable supporters of President Donald Trump and Vice President J.D. Vance. Both donated closely to Republican campaigns throughout the 2024 election cycle.
Another early backer, Peter Thiel, stays one in every of the most distinguished conservative enterprise buyers and an ally of the Trump household. Erebor’s formation aligns with the present administration’s efforts to loosen regulatory boundaries for banks participating in digital-asset actions.
The firm’s management, together with CEO Owen Rapaport and President Mike Hagedorn, maintains operational independence from its politically linked buyers. However, the presence of high-profile financiers reminiscent of Founders Fund, 8VC, and Haun Ventures has raised questions on the velocity of regulatory approval. Critics argue the financial institution benefited from favorable entry to federal businesses, whereas supporters declare the speedy course of displays Erebor’s sturdy compliance design and deep capital reserves.
$312B Stablecoin Market Poised for Change
The constitution might reshape US crypto banking by linking insured-bank infrastructure with blockchain finance. Under the GENIUS Act, banks issuing stablecoins should keep 100% reserves and publish month-to-month disclosures. The framework might speed up institutional adoption and funds testing.
If Erebor secures ultimate licenses, it could compete with Anchorage Digital for stablecoin issuance and custody providers. Its plans to lend towards crypto or AI {hardware} might increase liquidity for miners, market makers, and infrastructure companies.
Critics, nonetheless, warn of favoritism and potential danger focus. Senator Elizabeth Warren known as the approval a “dangerous enterprise.” Still, regulators painting the transfer as a measure towards integrating digital property underneath strict supervision.
According to information from CoinMetrics, the stablecoin market has grown by practically 18 % in 2025, reaching a capitalization of roughly $312 billion. Analysts at Galaxy Research forecast that regulated banks might seize as much as 25 % of this market by late 2026 as compliance frameworks mature.
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