Erebor Bank Gets Conditional U.S. Approval to Launch Crypto and AI Services

U.S. regulators granted Erebor conditional approval to operate as a bank targeting crypto, AI, defense, and manufacturing sectors.

Erebor has received conditional approval from the U.S. Office of the Comptroller of the Currency to operate as a federally chartered bank. Full activation depends on meeting additional regulatory benchmarks, including compliance infrastructure and potential Federal Deposit Insurance Corporation insurance.

Capital and backers
The bank secured $275 million in capital commitments. Key backers include Palmer Luckey (founder of Oculus and Anduril), Joe Lonsdale (co-founder of Palantir, managing partner at 8VC), and Peter Thiel’s Founders Fund. All serve as strategic investors; none hold operational roles.

Strategic scope
Erebor targets sectors labeled as underserved by traditional banking: crypto, AI, defense, and advanced manufacturing. Regulatory filings confirm the bank will hold and issue stablecoins directly, positioning this as a core line of business under strict federal oversight.

Leadership and structure
Headquartered in Columbus, Ohio, with a secondary office in New York, Erebor will be led by co-CEOs Jacob Hirshman and Owen Rapaport. The founders’ exclusion from management roles is intended to streamline compliance and mitigate regulatory friction.