Erebor Bank Gains Approval for AI and Crypto Services

The Office of the Comptroller of the Currency (OCC) has granted conditional approval for Erebor Bank to operate as a new institution focused on serving emerging technology sectors including AI and cryptocurrency.

The Columbus, Ohio-based bank was founded this year by a team that includes Palmer Luckey, co-founder of defence contractor Anduril Industries, and Joe Lonsdale, managing partner at venture capital firm 8VC and co-founder of data analytics company Palantir Technologies.

Comptroller of the Currency Jonathan Gould said:  “Erebor is the first de novo bank to receive a preliminary conditional approval since I arrived at the OCC. I am committed to a dynamic and diverse federal banking system, and our decision today is a first but important step in living up to that commitment.”

He noted that the decision also demonstrates the regulator’s commitment to fostering innovation, showing that the OCC does not place blanket restrictions on banks that want to engage in digital asset activities.

He added: “Permissible digital asset activities, like any other legally permissible banking activity, have a place in the federal banking system if conducted in a safe and sound manner.”

Erebor joins a growing number of banks positioning themselves as financial partners for fast-developing industries such as crypto, which have historically struggled to access traditional banking services.

The bank is also among several firms focused on digital assets or payments that have recently applied for federal or state banking or trust licences in the US.

For example, Paxos Trust Company, the crypto firm behind PayPal’s stablecoin, has applied to the OCC for a US National Trust bank charter, while Coinbase has also submitted an application for a national trust charter.