Erebor Bank National Charter Approval Marks First Under Trump’s Second Term
A newly chartered lender for the innovation economy is open for business. The Erebor Bank national charter approval from the Office of the Comptroller of the Currency (OCC) makes the crypto-friendly, tech-focused institution the first de novo national bank approved during President Donald Trump’s second term, according to The Wall Street Journal and Reuters.
The Federal Deposit Insurance Corporation (FDIC) cleared Erebor’s deposit insurance in December 2025. The bank launches with roughly $635 million in capital and will serve startups, venture-backed companies and high-net-worth clients segments that struggled for tailored services after the 2023 collapse of Silicon Valley Bank.
What the Erebor Bank national charter approval means
Erebor founded by Palmer Luckey, who will serve on the board positions itself as a specialist lender to defense, robotics, AI and advanced manufacturing. Plans include credit lines secured by crypto or private securities and financing for high-performance AI chips, alongside blockchain-enabled payments that can settle outside standard banking hours. “You can think of us like a farmers’ bank for tech,” Luckey told the WSJ.
Capital, investors and valuation
Venture backers include Andreessen Horowitz, Founders Fund, Lux Capital, 8VC, and angel investor Elad Gil. After FDIC action in mid-December 2025, Erebor raised $350 million in a round widely reported as led by Lux Capital, lifting its valuation to about $4.3–$4.35 billion roughly double a prior figure near $2 billion.
Risk controls and regulatory conditions
Regulators are imposing de novo safeguards. Prior OCC/FDIC materials reference elevated early-stage capital, including a 12% Tier 1 leverage ratio condition during the initial operating period, independent external audits, and pre-opening examinations typical for new national banks.
Timeline to the Erebor Bank national charter approval
Oct 2025
OCC issues preliminary/conditional approval for a national bank charter.
Dec 16, 2025
FDIC approves deposit insurance for Erebor Bank, N.A. (Columbus, Ohio).
Feb 6, 2026
OCC confirms national charter approval; first new national bank of Trump’s second term, per WSJ/Reuters.
Context & Analysis
The charter gives venture and deep-tech companies an additional regulated option after SVB’s failure reshaped startup banking. Erebor’s 24/7 settlement ambition via blockchain rails could compress working-capital cycles for high-throughput businesses. Execution risk remains around regulatory scrutiny of crypto-secured lending and liquidity management for around-the-clock payments.
Concluding Remarks
Erebor’s approval underscores regulators’ willingness under strict conditions to license a bank tailored to frontier-tech finance. The coming quarters will test whether 24/7 blockchain settlement and specialty underwriting can scale while meeting de novo capital and compliance obligations.
FAQs
Q : What is Erebor Bank and who founded it?
A : Erebor Bank is a de novo national bank founded by Palmer Luckey; he will sit on the board but not manage daily operations, per WSJ.
Q : When did regulators approve Erebor’s deposit insurance?
A : On Dec. 16, 2025, according to the FDIC.
Q : What sectors will Erebor serve?
A : Startups in defense tech, robotics, AI, advanced manufacturing and crypto-related businesses, plus high-net-worth clients.
Q : How much capital does Erebor have at launch?
A : About $635 million, according to WSJ.
Q : Who invested in Erebor’s late-2025 round and what was the valuation?
A : Reports indicate a $350 million round led by Lux Capital, valuing the bank around $4.3–$4.35B.
Q : Does Erebor plan crypto-backed lending and 24/7 blockchain payments?
A : Yes Erebor plans to extend credit backed by crypto/private securities and offer blockchain-enabled settlement.
Q : Is the Erebor Bank national charter approval final or conditional?
A : WSJ/Reuters report OCC approval of the national charter; FDIC insurance is approved, with typical de novo conditions (e.g., strong capital)
Facts
Event
OCC grants national bank charter to Erebor; FDIC deposit insurance previously approvedDate/Time
: 2026-02-07T12:00:00+05:00Entities
Erebor Bank, N.A. (Columbus, Ohio); Office of the Comptroller of the Currency (OCC); Federal Deposit Insurance Corporation (FDIC); Palmer Luckey; Andreessen Horowitz; Founders Fund; Lux Capital; 8VCFigures
Initial capital ≈ $635m; funding $350m; valuation ~$4.3–$4.35b; early-stage leverage 12% Tier 1 (conditions).Quotes
“You can think of us like a farmers’ bank for tech.” Palmer Luckey, to WSJ.Sources
WSJ report; FDIC press release/order; Reuters brief; Bloomberg funding coverage.