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Palmer Luckey’s Erebor has secured a national bank charter from federal regulators, becoming the first crypto-focused lender approved under the Trump administration and launching with $635 million in capital to serve tech startups locked out of traditional banking.
The Office of the Comptroller of the Currency approved the charter Friday, allowing Erebor to operate nationwide and offer cryptocurrency-backed loans, blockchain-based payment settlement, and financing for AI chip purchases—services most conventional banks avoid, according to The Wall Street Journal.
Erebor, valued at $4 billion after raising $350 million from Lux Capital, Andreessen Horowitz, and Founders Fund, aims to fill the gap left by Silicon Valley Bank’s 2023 collapse. Luckey, who founded Oculus before building defense technology firm Anduril, will serve on the bank’s board but won’t oversee daily operations.
The newly chartered lender launches with roughly $635 million in capital and intends to serve venture-backed startups, technology companies and high-net-worth individuals.
The above segment has faced reduced banking options since the 2023 collapse of Silicon Valley Bank.
Erebor is backed by prominent technology investors including Andreessen Horowitz, Founders Fund, Lux Capital, 8VC and Elad Gil.
The bank was founded by Oculus co-creator Palmer Luckey, who will sit on its board but will not oversee daily management.
The approval represents a notable regulatory development, suggesting federal willingness to authorize institutions designed to integrate digital asset services into traditional banking frameworks.
Erebor is positioning itself as a specialized lender to sectors often underserved by conventional banks, including defense technology, robotics, advanced manufacturing and artificial intelligence-driven businesses.
Prospective clients may include companies developing aerospace systems, automated factories and unconventional research ventures.
“You can think of us like a farmers’ bank for tech.”
Palmer Luckey, Founder and Board Member, Erebor, told The Wall Street Journal, arguing that traditional lenders frequently lack the expertise required to assess startups with unconventional assets.
The bank also plans to integrate blockchain-based payment rails that enable continuous settlement, a feature that differs from the limited business-hour processing common across the US banking system.
In addition, Erebor’s strategy includes extending loans backed by cryptocurrency holdings or private securities and financing purchases of high-performance artificial-intelligence chips.
These capabilities could expand access to credit for companies whose balance sheets rely heavily on digital or illiquid assets.
The Federal Deposit Insurance Corporation (FDIC) has already approved deposit insurance for the institution, a prerequisite that strengthens its credibility with prospective clients and investors.
Erebor’s regulatory approval follows a period of rapid capital formation. The company received preliminary conditional approval for its charter from the OCC in October.
Also, the company’s deposit insurance application was approved by the FDIC the following month.
Investor interest has driven a sharp increase in valuation. The startup was valued at approximately $2 billion during an earlier funding round before doubling to $4 billion after raising $350 million in financing led by Lux Capital late last year.
This valuation jump shows the venture backing for institutions positioned at the intersection of traditional banking and digital assets.
By securing a national charter, Erebor gains the ability to operate across state lines under federal oversight, which may accelerate its growth among technology-focused clients seeking stable banking relationships.
The charter approval arrives amid broader competition among financial institutions seeking to integrate crypto-related services into regulated banking environments.
Similar efforts from other firms to obtain US banking licenses highlight growing demand for compliant infrastructure capable of handling digital assets.
Erebor’s launch could signal a gradual normalization of crypto-adjacent banking services after several years marked by regulatory tightening and the exit of some traditional banks from the sector.
Access to credit backed by digital assets and around-the-clock blockchain settlement could improve liquidity and operational efficiency for technology startups and institutional clients.
At the same time, the bank’s success will depend on its ability to manage risk across volatile asset classes while maintaining regulatory compliance.
Its federal charter and deposit insurance approval place it under close supervisory oversight, positioning Erebor as a test case for how crypto-aligned financial institutions evolve within the US banking system.
