The new bank Erebor, founded by tech tycoons, has received OCC approval and will focus on technology and Crypto Assets services.

The new bank Erebor Bank, established by tech billionaires, has received conditional operating approval from the Office of the Comptroller of the Currency (OCC). Erebor will focus on serving tech companies in the virtual money, AI, defense, and manufacturing sectors, and will hold crypto assets.

Erebor Bank, established by technology tycoons, has received conditional approval from OCC.

The company named “Erebor” is headquartered in Columbus, Ohio, and was founded this year by military contractor Anduril Industries Inc. co-founder Palmer Luckey and others. According to reports, Joe Lonsdale, the head of venture capital firm 8VC and co-founder of data analytics company Palantir Technologies, is also involved. Luckey and Lonsdale are major donors to Trump’s recent presidential campaign.

In addition, Erebor Bank's early supporters also include Peter Thiel's venture capital firm Founders Fund and the investment institution Haun Ventures, which focuses on the crypto industry.

Erebor focuses on AI and Virtual Money, and will hold Crypto Assets.

According to its application documents, the bank's target market includes companies that belong to the U.S. innovation economy, particularly tech companies focused on Virtual Money, artificial intelligence, defense, and manufacturing, as well as payment service providers, investment funds, and trading companies. Erebor also intends to provide four major categories of products during its three-year establishment period:

Credit Products

Deposit Products

Stablecoin related services

Others include data processing, financial management, issuing credit cards through banking cooperation arrangements, and payment services.

In addition, banks will hold certain Virtual Money on their balance sheets to facilitate services related to stablecoins and wrapped stablecoins, as well as to pay the transaction fees required for participating in supported blockchains.

OCC Director: Allowing digital asset activities to have a place in the federal banking system.

The Director of the Monetary Authority, Jonathan V. Gould, stated:

“Erebor is the first de novo bank to receive preliminary conditional approval since I joined the OCC. Today's decision also proves that under my leadership, the OCC will not impose blanket barriers on banks wishing to engage in digital asset activities. Just like any other legally permissible banking activity, as long as conducted in a safe and sound manner, allowed digital asset activities also have a place within the federal banking system. The OCC will continue to pave the way for innovative approaches to financial services to ensure the establishment of a strong financial system.”

“De novo banks” refer to newly established banking institutions that are created from scratch, rather than being formed through the acquisition or restructuring of existing banks. These banks are typically initiated by entrepreneurial teams or investors, and must go through a rigorous regulatory approval process to obtain an operating license.

Erebor is one of the few companies recently applying for a banking or trust license with U.S. federal and state regulators that are engaged in digital asset or payment businesses. Other companies include Stripe's stablecoin platform Bridge, the crypto assets exchange Coinbase Global, and the UK payment processing company Checkout.com.

This article reports that the new bank Erebor, established by tech moguls, has been approved by OCC and will focus on technology and Crypto Assets services, first appearing in Chain News ABMedia.