The United States has approved its first newly created national bank under President Donald Trump’s second term, granting a federal charter to crypto-friendly startup Erebor Bank. The approval marks a notable development for the U.S. banking sector, particularly as it seeks to fill gaps left by recent financial industry upheavals.
According to people familiar with the matter, the Office of the Comptroller of the Currency (OCC) confirmed the approval on Friday, allowing Erebor Bank to operate nationwide. The move makes Erebor the first new national bank to receive a charter during the current Trump administration, signaling a potentially more receptive stance toward financial innovation, including crypto-related services.
Erebor Bank is launching with approximately $635 million in capital and plans to cater primarily to startups, technology firms, and high-net-worth individuals. The bank has positioned itself as a successor of sorts to Silicon Valley Bank (SVB), whose collapse in 2023 disrupted access to banking services for many tech companies, venture capital firms, and founders across the U.S.
Named after the Lonely Mountain in J.R.R. Tolkien’s The Hobbit, a place famously associated with hidden treasure, the bank’s branding reflects its ambition to become a trusted financial stronghold for clients operating at the intersection of technology, venture capital, and digital assets.
Industry observers note that the name choice also subtly signals the bank’s openness to crypto and blockchain-focused businesses, a segment that has struggled to find consistent banking partners in recent years.
The approval comes amid renewed debate in Washington over how the U.S. should regulate emerging financial technologies.
While the Trump administration has emphasized deregulation and market-driven growth, regulators have also maintained that new banks must meet strict capital, risk management, and compliance standards.
Erebor Bank’s nationwide charter allows it to accept deposits and provide lending services across state lines, giving it a significant advantage over state-chartered institutions.
Its entry into the market could increase competition for traditional banks while offering startups and crypto-aligned firms an alternative to established financial players.
As Erebor prepares to begin operations, market participants will be watching closely to see whether it can successfully rebuild confidence and serve sectors that have remained underserved since SVB’s collapse.
