Thiel-Backed Erebor Gets Green Light to Launch US Bank for Startups

TLDR

• Erebor has received preliminary approval from US regulators to operate as a national bank.
• Billionaire investor Peter Thiel and targets innovation-driven sectors back the company.
• Erebor aims to serve startups in cryptocurrency, artificial intelligence and advanced technology.
• The Office of the Comptroller of the Currency confirmed the issuance of a conditional banking charter.
• Erebor must complete compliance and security checks before beginning full operations in the United States.

Erebor, backed by billionaire Peter Thiel, has received preliminary approval to operate as a national bank in the US. The Office of the Comptroller of the Currency (OCC) confirmed Erebor’s preliminary banking charter this week. Erebor aims to become a strong financial partner for startups in crypto, AI, and advanced technology sectors.

Erebor gains preliminary banking charter

The OCC issued Erebor a conditional national banking charter, confirming regulatory progress for the Thiel-supported financial institution. Comptroller Jonathan V. Gould stated, “Permissible digital asset activities […] have a place in the federal banking system if conducted safely and soundly.” Erebor must now meet further compliance and security requirements before launching full operations.

This process may take several months, as Erebor completes reviews related to risk, operations, and digital infrastructure. Erebor targets the innovation economy, particularly startups that face difficulties accessing traditional banking services. It plans to offer reliable and low-risk banking services, focusing on lending, payments, and business solutions.

A person familiar with Erebor said, “We want to be a stable, low-risk, reliable bank doing normal banking things.” Erebor’s entry comes at a time of heightened demand for new banking partners among early-stage firms. Many startups lost access to key banking relationships after the 2023 regional bank failures.

Filling the void left by SVB’s collapse

Erebor steps in as several innovation-focused banks, including Silicon Valley Bank (SVB), collapse in early 2023. SVB, Silvergate, Signature, and First Republic either failed or were taken over during the US regional banking crisis. Startups then struggled to access capital, as lenders became more cautious due to rising interest rates.

Erebor plans to support firms navigating the tighter capital environment by offering lending solutions suited to the tech sector. The company positions itself as an alternative to traditional banks, promising transparent, sound financial operations. Erebor’s leadership believes it can restore trust where previous banks failed to manage risk.

The move signals a growing shift toward fintech-driven banking models built for high-growth businesses. Erebor’s focus aligns with sectors such as cryptocurrency and artificial intelligence, which face increasing challenges in securing compliant financial services. The bank seeks to fill an urgent financing gap that has been left open since SVB’s collapse.

Erebor is not the only firm pursuing a federal charter to offer digital asset services in banking. Coinbase has applied for a national trust company charter, while Circle and Ripple have also filed similar applications. These companies seek to expand into payments and custody without becoming full-service banks.

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