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Crypto-focused Erebor Bank became the first bank to receive a national bank charter during the second term of the Trump administration, the Wall Street Journal reported Friday.
The approval allows the Palmer Luckey-backed entity to operate as a bank nationwide, and occurred less than eight months after it applied for a charter with the Office of the Comptroller of the Currency.
The OCC did not immediately respond to a Reuters request for comment.
Launched by Anduril co-founder Luckey, Erebor received conditional approval from US banking regulators in October.
Palantir co-founder Joe Lonsdale is an investor in the bank, while Peter Thiel has also been widely reported to back the initiative.
Erebor plans to serve technology businesses in artificial intelligence, crypto, defense and manufacturing, as well as individuals who work at or invest in them, according to its charter application.
It is also aiming to fill the void left by Silicon Valley Bank’s collapse in 2023, which was a key banking channel for early-stage technology firms and venture capitalists deemed too risky by traditional banks.
Many startups struggled to access capital and meet immediate obligations, such as payrolls after the bank collapsed.
Like Anduril and Palantir, Erebor takes its name from J.R.R. Tolkien’s “The Lord of the Rings” series. In the books, Erebor is the “Lonely Mountain,” a fortress whose treasures are reclaimed from the dragon Smaug.