Erebor, Peter Thiel-Backed Crypto Bank Wins Conditional U.S. Approval for National Charter

Erebor, a crypto-focused bank backed by Peter Thiel, Palmer Luckey, and Joe Lonsdale, has been granted conditional approval for a national bank charter by the Office of the Comptroller of the Currency.

According to the Financial Times, Erebor has received early approval for a banking license but still needs to meet compliance and security requirements before commencing operations, which may take a few months.

The decision makes Erebor one of the few banks focused on digital assets to obtain this license, indicating a shift in policy under President Donald Trump’s administration.

In addition to regular banking, Erebor will also adopt blockchain-based settlements and may handle stablecoin transactions, positioning it as a bridge between traditional and crypto banking.

Erebor Takes Lead as Crypto Firms Race for U.S. Banking Charters

Erebor’s conditional approval puts it ahead of Ripple and Circle, the company behind the USDC stablecoin, both of which are still waiting for their banking license.

This shows how competitive the race has become among blockchain companies trying to get national bank status.

Crypto exchange Coinbase has also applied for a national trust company charter with the OCC, and although it does not intend to become a bank, the charter would allow it to expand into areas such as payments and custody services.

Crypto Firms Face Opposition Over Bank Charters

U.S. banking and credit union groups have asked the OCC to delay granting bank licenses to crypto firms, saying there are major policy and procedural concerns.

The groups argue that crypto companies’ business models don’t match the usual responsibilities of national trust banks. They also warn that giving these charters without proper oversight could change policy and weaken the financial system.

However, Custodia Bank founder Caitlin Long disagreed with these raised concerns, saying the matter will probably be decided in court.