Peter Thiel-Backed Erebor Gets OCC Greenlight, Ripple Waits

U.S. regulators have granted Erebor Bank, backed by billionaire Peter Thiel and entrepreneurs Palmer Luckey and Joe Lonsdale, conditional approval for a national bank charter. The decision makes Erebor one of the few digital-asset-focused institutions to receive such authorization, signaling a policy shift under President Donald Trump’s administration.

OCC Charter Puts Erebor Ahead in Race for Crypto Banking

According to The Financial Times, the charter approval allows Erebor to operate as a full-fledged national bank. This will be supervised by the Office of the Comptroller of the Currency (OCC).

Erebor’s conditional charter approval positions it one step ahead of Ripple, which is still awaiting a decision on its pending application. Ripple has applied for a U.S. banking license, underscoring how competitive the race has become for blockchain-based companies seeking national banking status.

Erebor’s founders describe the bank as a vehicle for the “innovation economy.” It will cate to clients in cryptocurrency, artificial intelligence, defense, and advanced manufacturing. This mirrors broader industry trends, as Ripple’s XRPL roadmap targets tokenization and stablecoin development to expand DeFi innovation.

The idea emerged after the 2023 collapse of Silicon Valley Bank. This left many technology startups and digital-asset firms struggling for reliable banking partners.

OCC Approval Signals Washington’s Shift Toward Crypto Banking

The report also revealed that Erebor’s backers include Thiel’s Founders Fund and Haun Ventures, both known for deep involvement in the crypto and venture capital sectors. Officials involved in the approval process insist the review was handled under standard OCC procedures.

However, the speed of the charter decision highlights a more supportive stance toward fintech and blockchain banking in Washington. Erebor will begin as a digital-only bank, headquartered in Columbus, Ohio, with an office in New York.

Its initial capital base of about $275 million will remain mostly in reserve until the bank clears all compliance and security conditions. Luckey and Lonsdale will not manage daily operations but will focus on strategic oversight.

Erebor’s Charter Ushers in Regulated Crypto Banking

In addition to conventional banking, Erebor will also adopt blockchain-based settlements and could support transactions involving stablecoins. By doing so, it becomes the middle ground between fiat and crypto banking.

It is an aspect where Ripple has also sought regulatory clarity via its charter application. However, the new OCC guidance on bank-stablecoin partnerships enables Ripple to partner with community banks before gaining full national bank status. Circle, the issuer of USD Coin (USDC), is also awaiting federal approval for a similar charter to expand its regulated stablecoin operations under direct OCC oversight.

Before opening, Erebor must still pass final cybersecurity and anti–money laundering checks. If fully approved, operations could begin in early 2026.