US Approves Erebor Bank, First New National Bank Under Trump’s Second Term
Why Erebor’s Charter Approval Stands Out
US regulators have approved a newly created national bank for the first time during President Donald Trump’s second term, granting a federal charter to Erebor Bank. The Office of the Comptroller of the Currency confirmed the decision on Friday, allowing the lender to operate nationwide, according to a Wall Street Journal report citing people familiar with the matter.
The approval places Erebor among a small group of newly chartered banks at a time when US regulators have been cautious about authorizing fresh entrants, particularly those tied to technology and crypto-adjacent activity. The bank is launching with roughly $635 million in capital and plans to serve beginups, venture-backed firms, and high-net-worth clients.
That client base was hit hard later than the collapse of Silicon Valley Bank in 2023, which removed a key source of credit and cash-management services for ahead-stage technology companies. Erebor is viewking to fill part of that gap, focusing on firms that often struggle to fit into .
Investor Takeaway
Who Is Behind Erebor?
Erebor is backed by a group of well-known technology investors, including Andreessen Horowitz, Founders Fund, Lux Capital, 8VC, and Elad Gil. The project was founded by Palmer Luckey, the co-creator of Oculus, who will sit on the bank’s board but will not be involved in day-to-day management.
The ownership profile reflects a broader trend of venture investors viewking regulated banking platforms that can serve portfolio companies directly, rather than relying on third-party institutions with limited appetite for ahead-stage or unconventional risk.
Regulatory clearance also follows earlier approvals. Erebor received conditional authorization from the OCC in October, and the Federal Deposit Insurance Corporation approved deposit insurance for the institution a month later, clearing two of the most critical hurdles for launching a national bank.
Focus on Defense Tech, Robotics, and AI-Linked Industries
Erebor is positioning itself as a specialist lender to emerging sectors such as defense technology, robotics, and advanced manufacturing. Potential clients include companies working on AI-driven factories, aerospace research, and pharmaceutical production tied to low-gravity environments.
Luckey framed the bank’s niche in practical terms when speaking to the Wall Street Journal. “You can think of us like a farmers’ bank for tech,” he said, arguing that many traditional to assess beginups whose assets do not fit standard lending templates.
The bank also plans to extend credit holdings or private securities, alongside financing for high-performance artificial-intelligence chips. These activities place Erebor closer to the intersection of venture finance, advanced manufacturing, and digital assets than most conventional lenders.
Investor Takeaway
Blockchain Payments and Valuation Growth
Erebor also plans to use blockchain-based payment rails that allow continuous settlement, diverging from the business-hour constraints that still define most US bank payment systems. While such features remain rare among federally chartered banks, they reflect ongoing experimentation around settlement efficiency within regulated frameworks.
Erebor was valued at about $2 billion in a a $4 billion valuation later than raising $350 million in a round led by Lux Capital, according to the report.
Taken together, the charter approval, funding profile, and business focus place Erebor among the most closely watched new US banks. Its progress may offer ahead clues about how regulators, investors, and founders approach bank formation in a post-SVB environment where access to credit for technology firms remains uneven.
