The OCC has announced that it has conditionally approved the de novo national bank charter application for Erebor Bank.
Following this announcement, the OCC granted preliminary conditional approval to Erebor Bank after a thorough review of its application.
In addition, in the process of granting this charter, the OCC also applied the same rigorous review and standards applied to all charter applications.
More information on OCC’s approval of the charter application for Erebor Bank
According to the official press release, the OCC has granted preliminary conditional approval only. This initiative means that the final approval and authorisation for the bank to open will not be granted until all of the pre-opening requirements are met. At the same time, until the final approval is granted, the OCC has the right to modify, suspend, or rescind this preliminary conditional approval if the institution deems any interim development to warrant such action.
The OCC’s preliminary conditional approval is dependent on Erebor Bank meeting ongoing requirements, including maintaining a minimum 12% Tier 1 Leverage ratio during its first three years of operation.
Erebor Bank represents a newly proposed US bank intended to be digital-native, aiming to serve sectors such as crypto, AI, defense, and high-growth technology. Furthermore, the bank is set to be a full-service insured national bank that plans to target its products and suite of solutions to technology companies and individuals who are leveraging virtual currencies. The institution also plans to offer a variety of lending and deposit products, as well as other related services.
Following this approval, Erebor plans to set up headquarters in Columbus, Ohio, with a secondary presence in New York, as its operational strategy is set to be predominantly digital (mobile/app and web) rather than relying on physical branch networks.
The institution applied for a national bank charter in July 2025, as the initiative was being backed by a group of high-profile tech investors, including Founders Fund and a group of entrepreneurs with prior links to defence tech and venture capital. According to its application, the bank intended to hold stablecoins on its balance sheet, as these digital tokens were designed to mirror the value of government-issued currencies and are typically backed by reserves. Erebor’s stated goal was set on the process of providing financial infrastructure to sectors that have struggled to find consistent banking partners in the traditional system.
