A new bank backed by tech billionaires that plans to fill the gap left by Silicon Valley Bank's collapse and serve firms in the "innovation economy" has received conditional approval from regulators.
The Office of the Comptroller of the Currency has conditionally approved the de novo national bank charter application for Erebor Bank, named after the "lonely mountain" in JRR Tolkien's 'The Hobbit'.
Erebor was founded by Palmer Luckey, who co-founded military contractor Anduril, and Joe Lonsdale, co-founder of data analytics firm Palantir, who both donated to Donald Trump's 2024 presidential campaign. Peter Thiel’s Founders Fund is among the venture's backers.
The company is aiming to serve firms in areas such as cryptocurrency, AI and defence, taking on a role that was served by Silicon Valley Bank before its collapse in 2023.
Comptroller of the Currency Jonathan V Gould, says the decision to grant conditional approval is "proof that the OCC under my leadership does not impose blanket barriers to banks that want to engage in digital asset activities. Permissible digital asset activities, like any other legally permissible banking activity, have a place in the federal banking system if conducted in a safe and sound manner."