Silicon Valley-backed Erebor Bank receives preliminary OCC approval to fill the banking void left by SVB’s collapse, focusing on stablecoin transactions and digital assets.
By Zoran Spirkovski
Editor Marco T. Lanz
Updated
2 mins read
A new crypto-focused bank backed by some of Silicon Valley’s most influential figures has received preliminary conditional approval for a national charter from a top US regulator, a move to reshape the banking landscape for technology startups. The Office of the Comptroller of the Currency (OCC) announced the approval for Erebor Bank on Oct. 15, signaling a new chapter for crypto-focused finance at the federal level.
The approval positions Erebor to address a significant void in the market created by the March 2023 collapse of Silicon Valley Bank, which left many tech and crypto firms without adequate banking services.
According to its charter application documents, Erebor was organized by Palmer Luckey, the founder of defense firm Anduril, and Joe Lonsdale, a co-founder of data analytics giant Palantir. Major investors, including Peter Thiel’s Founders Fund, support the venture.
The OCC granted preliminary conditional approval to Erebor Bank after thorough review of its application. In granting this charter, the OCC applied the same rigorous review and standards applied to all charter applications. https://t.co/9G7WkRRohN pic.twitter.com/tQhLqNbtM9
— OCC (@USOCC) October 15, 2025
Filings reveal Erebor’s ambition to operate as a premier, highly regulated institution that handles stablecoin transactions. The bank plans to hold certain digital assets on its balance sheet for operational purposes, a core part of the strategy behind Lonsdale’s investment in Erebor. This strategy places digital currency operations at the center of its business model, moving beyond the simple custody services offered by other institutions.
The decision from the OCC arrived just four months after Erebor filed its application in June 2025, a notably fast turnaround that suggests a more receptive federal environment for digital asset banking. The move comes as other major players in the digital asset space, such as Peter Thiel’s Bullish exchange, also pursue deeper integration with US financial markets.
While the preliminary approval is a significant step, Erebor must clear several regulatory hurdles before opening its doors. The OCC has conditioned its final approval on the bank obtaining FDIC insurance, maintaining a minimum 12% Tier 1 Leverage ratio for its first three years, and receiving agency non-objection for its senior executive team. The bank will be headquartered in Columbus, Ohio, and operate a digital-only model under the leadership of co-CEOs Owen Rapaport and Jacob Hirshman.
Disclaimer: Coinspeaker is committed to providing unbiased and transparent reporting. This article aims to deliver accurate and timely information but should not be taken as financial or investment advice. Since market conditions can change rapidly, we encourage you to verify information on your own and consult with a professional before making any decisions based on this content.
As a Web3 marketing strategist and former CMO of DuckDAO, Zoran Spirkovski translates complex crypto concepts into compelling narratives that drive growth. With a background in crypto journalism, he excels in developing go-to-market strategies for DeFi, L2, and GameFi projects.
