OCC grants preliminary approval to Erebor Bank, a Peter Thiel-backed startup focusing on crypto an AI

A national bank regulator has granted "preliminary conditional approval" for the venture capitalist Peter Thiel-backed Erebor Bank, which plans to serve the cryptocurrency and artificial intelligence sectors.  

The Office of the Comptroller of the Currency (OCC) granted approval on Wednesday. Comptroller of the Currency Jonathan Gould called Erebor the "first de novo bank to receive a preliminary conditional approval" since he started his role at the OCC in July.

"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," Gould said in a statement. "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."

Erebor is aiming to fill the gap of Silicon Valley Bank, a bank popular with startups and venture capitalists that collapsed in 2023. Erebor was founded in 2025 by Silicon Valley mainstays Palmer Luckey and Joe Lonsdale with backing from Thiel's firm Founders Fund and Haun Ventures, according to reporting from the Financial Times. Like other projects associated with Thiel, Erebor is named after a mountain in author J.R.R. Tolkien's book series "The Lord of the Rings."

In its application, Erebor said it would be a national bank that would provide both traditional banking and crypto-related products and services. According to the Financial Times, citing an unnamed source close to Erebor, the bank's application did not receive "special treatment" from the Trump administration, despite Luckey, Lonsdale, and Thiel's longstanding ties to the president.

"The target market for the Bank comprises businesses that are part of the United States innovation economy, in particular technology companies focused on virtual currencies, artificial intelligence, defense, and manufacturing, as well as payment service providers, investment funds and trading firms (including registered investment advisers, broker dealers, proprietary trading firms, and futures commission merchants)," according to the application. 

Erebor also said it would hold certain cryptocurrencies on its balance sheet. The main office will be in Columbus, Ohio with another office in New York City. 

Over the past year under the Trump administration, regulatory agencies, including the OCC, have shifted their stance toward crypto. The Federal Reserve has since withdrawn guidance that previously discouraged banks from participating in crypto. The central bank has also, along with the OCC, released a joint statement last month setting out how existing rules apply to banks holding crypto on customers' behalf, among other moves.