COLUMBUS, Ohio— Erebor Bank has received a national bank charter, becoming the first new national bank approved under the current Trump administration, according to a report by Wall Street Journal.
The approval came less than four months after the bank received conditional approval from the Office of the Comptroller of the Currency and less than two months after it was cleared for federal deposit insurance. Comptroller Jonathan Gould confirmed the charter approval in a post on X.
Founded by technology entrepreneur Palmer Luckey, Erebor plans to serve startups and high-net-worth individuals operating in cryptocurrency, artificial intelligence, defense and manufacturing. The bank opened Sunday with $635 million in capital and a roster of prospective defense and technology clients, the Journal reported.
A ‘Precious’ Name
Erebor Bank gets its name from JRR Tolkien’s The Hobbit — specifically from Erebor, also known as the Lonely Mountain. Its website says the bank is “enchanted.”
Those potential clients include companies developing AI-powered factories and an aerospace firm producing pharmaceuticals in low-gravity environments, according to the report.
“You can think of us like a farmers’ bank for tech,” Luckey told the Journal. “I think most farmers’ banks won’t claim that they’re the best bankers in the world, but they do understand farmers.”
Luckey will not take on an operating role at the bank but will serve on Erebor’s board, the Journal reported.
‘An Exciting Day’
An OCC spokesperson confirmed the charter approval to Banking Dive. In his post Saturday, Gould called the approval “an exciting day for the banking system” and said it reflects the OCC’s commitment to maintaining a dynamic and diverse financial system.
Gould has previously voiced support for new bank chartering, including in October when Erebor received conditional approval. He and Federal Deposit Insurance Corp. Chair Travis Hill have both spoken publicly in favor of expanding charter activity. As the CU Daily reported earlier, in recent months, the OCC has conditionally approved several bank charters, while the FDIC last month granted conditional approval for industrial loan company charters sought by Ford and General Motors.
Intentionally Opened on a Sunday
Erebor’s decision to open on a Sunday was intended to underscore its focus on blockchain technology, which allows transactions to settle at any time, including outside traditional banking hours, Luckey told the Journal.
Under the terms of its conditional approval, Erebor must maintain a minimum tier 1 leverage ratio of 12% during its first three years of operation, the OCC said in October.
