TLDR
- Erebor Bank is the first de novo bank approved under Comptroller Jonathan Gould.
- The OCC allows banks to engage in digital assets under strict risk controls.
- Erebor Bank plans to offer both traditional and digital asset services.
- Senator Elizabeth Warren criticized the OCC approval citing political favoritism.
A new player in U.S. banking, Erebor Bank, supported by prominent technology investors including Peter Thiel, Joe Lonsdale, and Palmer Luckey, has received preliminary conditional approval from the Office of the Comptroller of the Currency (OCC). The decision marks a step toward establishing Erebor as a federally chartered institution in Columbus, Ohio, signaling growing openness by regulators to innovation in the banking sector.
OCC Grants Preliminary Conditional Approval
The OCC confirmed on Wednesday that it has conditionally approved Erebor Bank’s de novo national charter application after a detailed review. This makes Erebor the first new bank to receive such approval under Comptroller Jonathan Gould. The regulator said the decision followed a comprehensive evaluation of Erebor’s business plan, management, and compliance framework.
Comptroller Gould stated, “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.” He also said the OCC aims to maintain openness to new banking models while ensuring safety and soundness. The charter approval remains conditional and subject to Erebor meeting final regulatory requirements before full authorization.
OCC’s Position on Digital Asset Activities
In the same statement, the OCC reaffirmed that banks can engage in digital asset activities if they are conducted safely. Gould noted that such activities can exist within the federal banking system with strong risk management and oversight.
He said the OCC will “continue to provide a path for innovative approaches to financial services to ensure a strong, diverse financial system that remains relevant over time.”
This position reflects a shift toward integrating traditional banking with digital financial services. Erebor Bank’s business model includes offering traditional deposit and lending services alongside digital asset-related activities. The bank intends to hold around $1 million in cryptocurrency to support transaction operations.
Erebor Bank’s Vision and Client Base
Erebor Bank plans to serve technology companies and high-net-worth individuals engaged in virtual currencies and tokenized products. The founders aim to bridge conventional banking with emerging digital markets while complying with federal standards. Based in Columbus, Ohio, the institution will operate as a full-service national bank once final approval is secured.
The leadership team includes executives with experience in both finance and technology. Erebor’s application emphasized robust governance, capital adequacy, and compliance systems designed to meet federal requirements. The bank’s approval process will continue under the OCC’s supervision until all conditions are met.
Political Response to the Approval
Following the OCC’s announcement, U.S. Senator Elizabeth Warren (D-Mass.), Ranking Member of the Senate Committee on Banking, Housing, and Urban Affairs, released a statement criticizing the approval. She said, “President Trump’s billionaire buddies Peter Thiel and Palmer Luckey just received approval from the OCC to launch a new bank that will cater to the financial whims of Silicon Valley billionaires.”
Warren added that such regulatory decisions could favor politically connected entrepreneurs over ordinary businesses. Her remarks reflect growing scrutiny of new financial institutions linked to high-profile investors. Despite the criticism, Erebor Bank’s conditional charter marks progress in its plan to operate as a federally regulated institution serving clients in both traditional and digital finance.
