Erebor Bank launches with $635M to fund AI startups
Crypto-focused startup Erebor has received the first new U.S. banking license during President Donald Trump’s second term.
According to Cointelegraph, U.S. regulators have approved the creation of a new national bank for the first time during Trump’s second term, granting a license to Erebor Bank, which is focused on financial support for defense technologies, robotics, and artificial intelligence.
Erebor is backed by a group of prominent technology investors, including Andreessen Horowitz, Founders Fund, Lux Capital, 8VC, and Elad Gil. The project was founded by Oculus co-founder Palmer Luckey, who will join the board of directors but will not be involved in day-to-day operations.
The Office of the Comptroller of the Currency (OCC) confirmed the approval on Friday, allowing the lender to operate nationwide.
The institution is launching with approximately $635 million in capital and aims to serve startups, venture-backed companies, and high-net-worth clients — a segment left underserved following the collapse of Silicon Valley Bank in 2023.
Startup lending
The bank positions itself as a specialized lender for emerging industries such as defense technology, robotics, and advanced manufacturing. Potential clients include companies developing AI-powered factories, conducting aerospace research, and producing pharmaceuticals in low-gravity environments.
“We can be thought of as a kind of farmer’s bank for technology companies,” Palmer Luckey told The Wall Street Journal, noting that traditional banks often lack the expertise to assess startups with unconventional assets.
Erebor also plans to integrate blockchain-based payment systems that enable continuous settlement — an unusual feature for the U.S. banking system, where transactions are typically limited to business hours. The Federal Deposit Insurance Corporation (FDIC) has previously approved deposit insurance for the institution.
The bank’s strategy includes issuing loans backed by crypto assets or private securities, as well as financing the purchase of high-performance AI chips.
As we wrote, Crypto-friendly Erebor applies for U.S. Banking Charter approval
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