Erebor Bank has been granted a national banking charter by the US Office of the Comptroller of the Currency, marking it as the first bank to achieve this approval during the second Trump administration.

Following this news, the crypto-focused bank, which is supported by Anduril co-founder Palmer Luckey, applied for its charter with the OCC just under eight months ago. According to reports from The Wall Street Journal, Erebor Bank secured final approval shortly after submitting its application.

Erebor previously received conditional approval from US banking regulators in October, as detailed in an OCC news release. This conditional approval required Erebor to meet specific pre-opening requirements before the final authorization was granted, allowing for modifications or revocation of the initial approval by the OCC if necessary. The final approval hinges on Erebor maintaining a minimum Tier 1 Leverage ratio of 12% during its first three years of operation.

Focus Areas and Strategic Positioning

Erebor intends to offer banking services to technology companies involved in artificial intelligence, crypto, defense, and manufacturing sectors. The bank will also cater to individuals working at or investing in these enterprises.

The charter also reflects Erebor’s aim to fill a void left by the collapse of Silicon Valley Bank in March 2023. Silicon Valley Bank had traditionally provided banking services to early-stage tech firms and venture capitalists, often considered too risky for traditional banks. Post-collapse, many startups encountered challenges securing necessary capital and meeting immediate financial obligations.

This approval arrives as the US banking sector continues to adjust its strategies for serving technology and crypto-related businesses following Silicon Valley Bank’s failure nearly two years ago.