OCC Grants Conditional Charter to Erebor Bank, Signaling U.S. Openness to Crypto Banking

The Office of the Comptroller of the Currency (OCC) has granted preliminary conditional approval to Erebor Bank, a new national bank backed by tech heavyweights including Peter Thiel, Palmer Luckey, and Joe Lonsdale. This decision marks the first new national charter approved under Comptroller Jonathan Gould and signals a subtle but significant shift in U.S. financial policy toward greater acceptance of crypto-linked banking.

A New "Narrow Bank" for the Innovation Economy

Headquartered in Columbus, Ohio, Erebor Bank received its conditional charter after a four-month review. The institution is poised to fill the void left by the 2023 collapses of tech-focused banks like Silicon Valley Bank and Signature Bank.

• Model: Erebor aims to be a full-service national bank, offering traditional deposit and lending services. Its strategy is described as "stable, low-risk, reliable," specifically contrasting with the risk-heavy strategies that led to past failures.
• Crypto Presence: The bank will maintain a small, deliberate crypto presence, starting with about $1 million in digital assets for transactional use, an approach designed to prioritize compliance and stability.
• Client Focus: It plans to cater to the innovation ecosystem, including clients in AI, defense, manufacturing, and digital assets.

Policy Pivot Under Comptroller Gould

The conditional approval reflects a notable policy turning point by federal regulators, who had been restrictive toward crypto banking since 2023. Comptroller Gould emphasized that the OCC "does not impose blanket barriers" to banks engaging in digital asset activities under strong compliance standards.

This move aligns with a broader Washington shift toward crypto inclusion, reinforced by:

• The recent signing of the GENIUS Act (establishing stablecoin oversight).
• The OCC's reversal of its restrictive position earlier this year, which now clarifies that banks may buy, sell, and custody crypto assets for clients.
• Gould's leadership, which has moved swiftly to modernize digital asset policies, including removing references to "reputation risk" from internal guidance.

Political Scrutiny and Future Prospects

Erebor’s founding team has strong political ties to the Trump administration, prompting some scrutiny. Senators have already urged Gould to examine potential conflicts of interest, particularly given the OCC's new oversight role under the GENIUS Act.

If Erebor secures full authorization, it will serve as a test case for federally chartered crypto banking—a model integrating digital assets into the national framework while maintaining a conservative, compliant structure. Its success will determine whether it becomes a blueprint for future digital-finance institutions or remains a politically charged experiment.

October 2025, Cryptoniteuae