- Erebor, a new crypto-focused bank started by Palmer Luckey, received conditional approval from U.S. regulators on October 15, 2025.
- The bank gained its preliminary green light from the Office of the Comptroller of the Currency (OCC) in only four months.
- Erebor plans to serve cryptocurrency and Artificial Intelligence companies facing difficulties accessing traditional banking services.
- The venture is backed by well-known technology leaders, including Joe Lonsdale and Peter Thiel.
- The approval has sparked debate among lawmakers and raised concerns about regulatory standards and potential risks.
Palmer Luckey’s new banking company, Erebor, has been granted conditional approval to operate as a bank serving cryptocurrency and artificial intelligence firms. The approval came from the Office of the Comptroller of the Currency (OCC) on October 15, 2025, and is located in Columbus, Ohio.
This decision marks a notable development for digital asset businesses, which have faced challenges in securing relationships with established banks. Erebor’s approval process took only four months, which is considered unusually fast for a new institution of its type.
OCC head Jonathan Gould announced the decision, calling it an important step for his leadership. In his statement, Gould said, “Erebor is the first de novo bank to receive a preliminary conditional approval since I arrived at the OCC. I am committed to a dynamic and diverse federal banking system, and our decision today is a first but important step in living up to that commitment.” Erebor still has several months of compliance and security checks to complete before it can start operations.
Industry figures have raised questions about the speed of the bank’s regulatory review. The approval’s timing and Luckey’s political connections have drawn scrutiny. According to Erebor’s fundraising memo, Luckey intends to leverage his political contacts for the venture’s growth. Luckey, who co-founded defense contractor Anduril and is worth about $3.6 billion, started the bank following the collapse of Silicon Valley Bank in 2023.
Erebor is supported by technology veterans including Joe Lonsdale, co-founder of Palantir Technologies and Erebor’s main partner, and Peter Thiel, another Palantir co-founder. Luckey and Lonsdale were also major donors to President Donald Trump’s campaigns. The bank’s name is a reference to the “Lonely Mountain” in J.R.R. Tolkien’s The Lord of the Rings.
OCC Comptroller Gould acknowledged concerns about digital assets, stating, “Today’s decision is also proof that the OCC under my leadership does not impose blanket barriers to banks that want to engage in digital asset activities. Permissible digital asset activities, like any other legally permissible banking activity, have a place in the federal banking system if conducted in a safe and sound manner.”
Some critics, such as Senator Elizabeth Warren, warn the decision could increase risk in the banking sector. Warren called it a sign of possible regulatory decisions that might “set up another bailout funded by American taxpayers.”
Other firms are also seeking similar banking licenses to serve digital asset businesses, including Stripe’s Bridge, Coinbase Global, and Checkout.com. Erebor now must pass further compliance reviews before beginning full operations.
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